Pictures from the scene in the riverside industrial district showed officers clearing the venue, which was left littered with bottles and N20 canisters.
Officers said arrests were made but it was not immediately clear how many.
Newham police wrote on Twitter: “A large unlicensed music event has been shut down by officers tonight in Royal Docks.
“Arrests made and considerations being given for a £10,000 fine for breaches of Covid-19 legislation.”
It comes after 60 partygoers were broken up by police after officers were called to an unlicensed music event in Kemp Road, Chadwell Heath on Thursday night.
Police said they dispersed the crowd and handed a £10,000 fine to the organiser of the rave.
In a tweet Barking and Dagenham police said: “We take the lives of all those within our communities seriously.
“We only intend to protect our communities & operate with Covid Tier 4 Legal Guidelines. Please help us to help you, Stay Home, Stay Safe this NYE.”
The Metropolitan Police had warned revellers to stay at home and deployed extra officers to patrol the capital to catch out those breaking the rules.