A long-running dispute between rival camel tour operators on Broome's Cable Beach in Western Australia has taken a new twist, with police investigating allegations of theft and dung-throwing.

A sunset camel ride along Cable Beach is one of Broome's major tourist drawcards.

But it is also the source of a bitter, five-year argument between two of the tour companies, Red Sun Camels and Ships of the Desert, over operating licences.

Broome detectives have confirmed they are investigating allegations of the theft of camels and equipment.

One operator has also accused the other of pelting its staff with camel dung.

Police have interviewed both parties but no charges have been laid at this stage.