Government spokesman Win Myaing said the relocation today from Aung Mingalar quarter in Sittwe township was voluntary.
But a well-known activist, Aung Win, said many of the families were unhappy about the move.
Win Myaing said 577 people who lost their homes during June 2012 sectarian violence were taken to camps outside of Sittwe, with more relocations planned for tomorrow.
He said thousands of people who didn't lose their homes would remain in Aung Mingalar.