On Wednesday, the NSW Supreme Court was played footage of an encounter between Mr Spedding, his wife and an unnamed woman who approached the couple outside their house in Lake Cathie.
In the footage, the woman tells Mr Spedding she did not want him on the street with a mobile phone and asked he not walk near a local community centre.
"I just would like to know that you would never have a mobile out here in case you're grooming my children," she says.
"I just don't want you around when there's so many children around.
"I need to express my anger."
The woman says she "couldn't sleep" and felt sick knowing Mr Spedding was living in the neighbourhood.
The state will open its case on Thursday, and will argue authorities acted appropriately in its investigation of Mr Spedding.
Mr Jubelin will be called as the last witness in the state's case, the court was told.
'I need to express my anger': Court shown confrontation between woman and former William Tyrrell suspect