“It is difficult to assess the likelihood of the frustration of the community resulting in violent actions,” Justice Muir said.

“Evidence shows steps are being taken, designed and probably likely to reduce the risk of group violence, but I accept that ... it is too early to conclude that the risk is at a level where I could be satisfied of the existence of no acceptable risk.”

Mr Clumpoint was one of about 30 people arrested after a riot at the small Aboriginal community on November 26 last year.

Three hundred of the islands residents erupted into anger, burning the local police station to the ground and damaging other buildings in response to the death in custody of Cameron Doomadgee on November 19.

An autopsy revealed Mr Doomadgee, 36, had four broken ribs and died of a punctured lung.

Mr Clumpoint, who was allegedly one of the riot's ringleaders, was given bail in the Townsville Magistrates Court on condition he live in Townsville.

Mr Clumpoint's solicitor Andrew Boe told the hearing in Brisbane today the bail condition separated his client from his family and prevented him from continuing his employment as a carpenter.

Ross Martin, SC, representing the Office of the Director of Public Prosecutions, opposed the move.

He said it was too dangerous to have the rioters back in the community because even in their absence there was a degree of hostility and tension with rebuilding efforts being hampered, confrontations and threats of further rioting.

Justice Muir said he would not speculate on the difficulties which may arise on the island with the beginning of the coronial inquest into Mr Doomadgee's death next month.

He predicted it would be more possible to form an accurate assessment of the degree of risk of Mr Clumpoint returning as time goes on.