An old match factory in East London – which now houses more than 700 apartments – could be used as the launch site for anti-aircraft high velocity missiles during the Olympic Games.

Some (not all) of the residents living in the Bow Quarter have received a leaflet from the Ministry of Defence (MoD) stating that the Lexington Building water tower within the development "proved to be the only suitable site in this area for the high velocity missile system." The leaflet adds: "The location has been chosen as it is situated close to the Olympic Park and offers an excellent view of the surrounding area and the entire sky above the Olympic Park. The top of the tower also offers a flat, uncluttered and safe area from which to operate."

In a bid to allay the fears of residents, the leaflet adds: "The air defence system will be manned by fully trained, professional soldiers. It will be securely protected and it does not pose any hazard to residents. The system will be used to monitor the airspace and will only be authorised for active use following specific orders from the highest levels of government in response to a confirmed and extreme security threat."

This week, the MoD is to carry out a national Olympic security exercise, adds the Guardian, and the missile units at the former Bryant & May match factory will be installed and armed with dummy rockets. The newspaper states: "The Star Streak missiles that are likely to be installed on top of a water tower inside the Bow Quarter complex travel at more than three times the speed of sound, have a range of 5km and use a system of three dart-like projectiles to allow multiple hits on a target. Ten soldiers will be on duty at all times to guard and operate the missiles if needed to bring down a fast-moving jet or helicopter attack."

However, a spokesman for the MoD added that it is not yet been decided as to whether the missile system is actually going to be deployed. "No final decision on whether or not to deploy ground-based air defence systems for the Games has been taken", he told the Guardian. They are simply one option in a "multilayered air security plan for the Olympics", which includes Typhoon fast jets and helicopters. These capabilities will also be tested during this week's exercise. (Here's a complete list of the missile staging sites.)

Writing for the Telegraph, journalist and Bow Quarter resident Neil Midgley was told by Army military liaison officer Lieutenant-Colonel Fahy that even if the military does opt to put the system in place, the decision to fire any missiles would rest with no less than David Cameron. He said: "The decision on any firing of those missiles sits with the Prime Minister, and a couple of senior ministers. Nobody in the Army has the power to do that."