Prohibitory orders under Section 163 BNSS were imposed in Nahan following clashes at Valmiki Chowk.
Gatherings of five or more people, rallies, and carrying weapons are strictly banned until October 29.
Extra police forces were deployed across the area to maintain order and prevent further conflict.
Prohibitory orders restricting the assembly of people have been imposed till October 29 in certain parts of Nahan town in Himachal Pradesh's Sirmaur district, where a dispute between two communities had turned violent, officials said on Tuesday.
District Magistrate, Sirmaur, Priyanka Verma, imposed the orders late Monday night following reports that people belonging to the Sikh and Valmiki communities from Himachal Pradesh, Haryana, Chandigarh, and Punjab are expected to arrive at the Valmiki Chowk to hold a protest in favour of their communities.
On October 23, a dispute arose at the Valmiki Chowk in Nahan town between members of the Sikh and Valmiki communities regarding the installation of a 'welcome gate' by the Sikh community.
The two groups hurled stones at each other, leading to injuries to 14 people, including some police personnel. Government and private vehicles were damaged.
Although the situation was brought under control through sustained police intervention, communal tension in the area remains a matter of concern, the order stated.
There is apprehension that the members of the Valmiki and Sikh communities, particularly Nihang Sikhs from Himachal Pradesh, Punjab, Haryana and Chandigarh will assemble at the Valmiki Chowk here on Tuesday to protest against the damage caused to the Valmiki Chowk structure, the order stated.
Such mobilisation may lead to renewed confrontation, physical clashes, injuries, damage to property and disturbance of public tranquillity and communal harmony and there is apprehension that the situation may deteriorate into communal tension, thereby threatening public peace and tranquillity, it said.
The orders prohibit the assembly of five or more persons, carrying lethal weapons, rallies, processions, demonstrations and strikes.
It also prohibits carrying of any kind of inflammable objects and hurling stones or any objectionable materials in public places.
The district magistrate has also put a complete ban on inflammatory speeches, communal or anti-state or anti-national speeches.
Earlier on Saturday, a joint meeting of members from the Valmiki and Sikh communities was called by the DM and both sides agreed to a peace pact, affirming that there would be no further disputes between them.
Subsequently, the Valmiki Jayanti procession passed through the Govindgarh neighbourhood, where members of the Sikh community participated enthusiastically in welcoming the procession.
Though there is currently no significant tension between the two communities, there is a concern that the situation could deteriorate due to attempts by outsiders to interfere in the matter, officials said.
Violence had erupted in the area after some Sikh residents of the Gobindgarh locality were attempting to install the welcome gate, which was opposed by the Valmiki community.
According to police, an argument broke out between the two groups and the situation soon escalated, with both sides attacking each other with bricks, stones and glass bottles.
Fourteen people, including Nahan Sadar police station Station House Officer Kulbir Singh and two other police personnel, sustained injuries.
