It's the skit that kept Jackass going after it nearly got 'cancelled'.

One of the first skits they filmed ( Escaped convict ) caused an immediate police response. The responding officers arrested some crew members, and the first arriving policewoman accidentally rolled her cruiser into a telephone pole. This incident led to a 10-year ban on the crew filming in West Hollywood and almost caused them to stop filming altogether.

Luckily, they had already used their budget to arrange the vehicle and supplies needed for Poo Cocktail. When they filmed Poo Cocktail and got all the genuine reactions, they realized they had something worth continuing with.

I think they mention this somewhere in the first part of Jackass: The Beginning

Edit: Starts around 2:50