Anti Austerity Alliance TD Paul Murphy has been arrested on suspicion of false imprisonment by gardaí investigating an incident involving Tánaiste Joan Burton.
The Dublin South-West TD is one of four people arrested over the incident, which happened three months ago.
Gardaí have extended his detention until 7pm, when he can be charged, released or further detained.
Mr Murphy, a member of the Socialist Party, is being held at Terenure Garda Station.
Ms Burton was trapped in her car in Tallaght for more than two hours by water charge protesters.
Two arrested over Dublin protest which left Joan Burton trapped in a car for more than two hours
She had been attending a graduation ceremony at An Cosán College in Jobstown when her car was surrounded by protesters who banged on the car and chanted slogans.
Gardaí are investigating a number of alleged offences, including false imprisonment and public order offences.
Two local councillors have been released, while Mr Murphy and a local activist remain in custody.
Socialist Party TD Joe Higgins has described the arrests as over the top, political policing.
At an Anti Austerity Alliance News conference this morning Mr Higgins said the manner in which the four were arrested was designed to denigrate the anti-water charges movement.
He said this was the only read you could put on what he called morning raids on Irish homes.
Mr Higgins confirmed that two Anti Austerity Alliance councillors for the Tallaght area, Kieran Mahon and Mick Murphy, were among those arrested.
Mr Higgins said the fourth person arrested was local activist Scott Masterson.
Mr Higgins said he had spoken to Mr Murphy at the garda station this morning.
He said Mr Murphy had never previously been approached by the gardaí or been asked for a statement.
However, he said he understood there had been a criminal investigation under way into the incident since November.
Ruth Coppinger on the arrest of Paul Murphy
Speaking on RTÉ's Today with Sean O'Rourke earlier, Socialist Party TD Ruth Coppinger said the arrest of Mr Murphy was designed to weaken the anti-water charges movement.
She said: "This is a cheap attempt to denigrate and to weaken the anti-water charges movement as we approach the make-or-break time when the bills are coming out and when there is going to be huge civil disobedience in terms of mass non-payment of those bills.
"For a whole number of months it would seem that over the top and a criminal waste of garda resources have been put in to trying to find something to latch on to somebody in Jobstown over this protest."
A spokesperson for the Government declined to comment on the arrests, and said it was an operational matter for Gardaí.
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