The cultural festival to celebrate the Olympics will take place from next weekend at the new venue, which was created on derelict Pontoon Dock in east London.
London Pleasure Gardens confirmed the festival is going ahead but that the ticketed events have been cancelled and Last Mile would now mainly be open to Olympic ticket holders.
Websites selling tickets such as See Tickets and ents24.com state the events are cancelled.
A spokesperson for the Pleasure Gardens said: "We have made some changes to the Last Mile Festival programming at London Pleasure Gardens. Locog has given us a daily limit of 2,500 local residents who can visit us during the Last Mile Festival to alleviate extra strain on the transport system.
"During the Games, space on the site will largely be reserved for Olympic ticket holders who will be accessing LPG from the Excel Centre. We are altering our programming to reflect this. During the Games, LPG will have big screens, food and drink, a beautiful turfed hill to relax on, wild meadows to walk though, art installations and the Bat and Sword venue, one of the largest sports bars in the London."
Event understands that acts set to perform at the festival received an email saying there was "a very real possibility the project will not go ahead".
Ska duo The Dualers said they were no longer performing and composer and producer Stuart Wood also confirmed his music and theatre show Mask of Joy would no longer be appearing at Last Mile.
Last week, Bloc Weekend at London Pleasure Gardens was shut down on its first night owing to dangerous overcrowding. Bloc's organiser Baselogic Productions then went into administration.
London Pleasure Gardens is scheduled to host the Africa Stage for this weekend's BT River of Music event on 21 and 22 July. BT River of Music has released 500,000 free tickets spread between five London venues along the Thames.
London Pleasure Gardens and BT both said that Africa Stage would be going ahead.
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