It is understood the pro-Palestinian marchers were stopped by police on the outskirts of the village.
Several bridges across the canal were closed, as was access to some roads in the area.
DUP MP for Upper Bann Carla Lockhart was in Scarva and described the policing operation as “very heavy-handed”.
“There were water cannons brought in, there were movements from TSG (tactical support group) which only sought to highlight tensions so we were able to intervene and get that de-escalated and the parade passed along the towpath with no incident,” she said.
“That took a significant piece of work and I want to commend the community who were here protesting because they’re angry at this parade, they’re angry at what it stands for and the political nature of it.”