Aboriginal activists have set up what they describe as a refugee camp on Perth's Heirisson Island for displaced Indigenous people, as the State Government prepares to close some remote Indigenous communities.

In a letter to the WA Governor, the group said the move was in response to the State Government's planned closure of up to 150 Aboriginal communities, judged by the Government to be unsustainable.

The group, which said it represented the Nyoongar nation and calls itself the Djurin Republic Executive Council, said the camp was "... a place of retreat for all Aboriginal persons who have been and will be forcibly removed by the West Australian Government".

Last year, Premier Colin Barnett revealed plans to close between 100 and 150 of the 274 remote communities in WA, saying the State Government could no longer continue to service them.

The Commonwealth provided funding for about two thirds of the state's Aboriginal settlements with the WA Government funding the balance.

But the Commonwealth has withdrawn its funding, and is handing over responsibility to the State Government over the next two years.

At least a dozen people were at the protest site.

The Nyoongar group on Heirisson Island said the displacement of people from remote areas to regional towns and cities would create increased homelessness, higher arrest and incarceration rates, family breakdowns, forced removal of children and suicide.

No elders were available for interview at the camp when the ABC approached a number of people at a security point near the car park entrance.

The ABC was told they might make a statement on Tuesday.

Heirisson Island was the scene of a major confrontation between police and Aboriginal activists two years after a Nyoongar tent embassy was set up on the site.

Police moved on to the island in March 2012 after a protest lasting more than a month.