Police responded to calls just before 11pm on Friday to find a gathering of as many as 400 people in the Cecil Hills Community Centre on Sandringham Drive, which is owned and operated by Liverpool Council as a venue for hire.

One 17-year-old was arrested after allegedly assaulting a police officer as well as a 16-year-old for failing to comply with a move-along notice by police.

Both were taken to Green Valley Police Station, where they were later released to their parents.

The party's attendance peaked at around 400, four times the maximum capacity allowed by the council.

A Liverpool Council spokesperson told Fairfax Media the council were taking the matter seriously and would be investigating the incident.

"Penalties for breaching our casual hire agreement include potential loss of their bond payment and a lifetime ban from hiring any community facilities," they said.

Mehmet Jamal, 18, a friend of the party organiser, said he didn't see any reason for the heavy police presence.

"Sure, some people were drunk and everything but everyone was just having a good time."