Police in Derry have lifted the cordon around Quarry Steps and the area is now fully accessible to the public.
An extensive specialist search has been carried out and they say they have found no indication or evidence of an explosion in that area. Although they did uncover a significant amount of suspected herbal cannabis with an extimated street value of between £400 and £500.
A Police spokesperson said: "From approximately 5pm on Tuesday police received a number of calls in relation to this incident. We do know that a lorry sustained two tyre blow outs in John Street around the time of the initial reports - this resulted in some damage to windows in the immediate vicinity of the vehicle. The majority of calls we received came from the Waterside and many people we spoke to reported a bomb explosion – one caller stated that debris had fallen on the building of a local business and others said that their windows and houses shook. Police also had to take into account a report of masked men in Dunfield Terrace.
"As a result of all those calls the decision was made to focus our searches and enquiries in the Spencer Road area.
"We appreciate that this incident has caused disruption to residents and local businesses however we feel we took the necessary steps to thoroughly investigate the reports and keep the public safe. We would like to place on record how grateful we are for the patience and understanding of those residents and business owners directly affected by the investigation. Thanks must also go to our colleagues in Council, City Centre Initiative and local representatives who provided assistance throughout the evacuation and search operation.
"The cause of the reported explosion remains unclear. Unless further information comes to light police have currently exhausted all available lines of enquiry."