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There has been a shift in attitudes towards Muslims in the past year, according to Omar Mosque chairman Munir Hussain.
Dr Hussain said the rise of IS and the recent Reclaim Australia movement have contributed to the change.
He made the comments following the distribution of a "racist" flyer circulating around Oak Flats, which calls on residents to "stop the mosque", referring to Uthman Mosque in Parkes Street, Oak Flats, which has been operating for several months. It is affiliated to Omar Mosque in Gwynneville and the Wollongong Islamic Society.
It was not the first time the mosque had been targeted, Dr Hussain said.
"We have had number plates stolen from someone's car, another car was sprayed with paint and we have had several complaints to council," he said.
"We want peace, we are not doing anything illegal and we shouldn't be blamed for what is happening in the Middle East.
"It's pure discrimination and racism. It is just agitation by some people. "
Illawarra People for Peace media officer Maria Solano said this behaviour was quite rare.
Communication and community cohesion were important for maintaining the peace.
"The Illawarra is a very peaceful place," Ms Solano said. "We realise there are some people that for some reason are not happy with the new mosque. But the Bilal Mosque [in Cringila] hasn't had any issues and it's been there for a while."
Bilal Mosque public officer Gary Ismail believes that the problems experienced by the Oak Flats mosque could be because it is new and people haven't adjusted or don't understand.
"We try to explain [to people] what the Islamic faith is about. That it's not what you see on the 6 o'clock news," Mr Ismail said.
"I'd like [Islam] to be represented as a religion of peace. We know there are a lot of people, who are 'so-called Muslims'. They are lost, they don't understand a lot of the texts and the scriptures, and they obviously fall trap to people who instigate hate."