The Dunedin police tactical response group last night seized more than an ounce of cannabis, 186 "party pill" capsules and more than 350g of benzyl-piperazine (BZP) from a Maitland St house, police said.
Sergeant Chris McLellan said a 64-year-old unemployed Dunedin man was arrested.
He was expected to appear in the Dunedin District Court next week charged with possessing class-C controlled drugs for supply and cannabis-related charges.
Police raided the house at 8pm yesterday after receiving information from members of the public about activity at the house.
Police believed the man had been dealing for a "significant period of time", Sgt McLellan said.
The street value of BZP capsules fluctuated, but when sold in stores before a recent ban they retailed for between $45 and $65 per six-pill packet, Sgt McLellan said.
BZP became a class C drug on April 1.
While personal use is legal until the end of September, possession of more than 100 pills or 5g of BZP is illegal.
In last night's raid, police also seized more than $7500 in cash, heat lamps and timers which were "usually associated with cannabis cultivation".
• Dunedin police are investigating the burglary of a Dunedin ski store in which clothing valued at $50,000 was taken.
Senior Sergeant Mel Aitken, of Dunedin, said police believed the rear door of Beggs Ski Shop, in George St, was forced between 9pm on Sunday and 10am on Monday.
The thieves gained access through the dead-locked door, she said.
An undisclosed amount of money was also taken from the till.
Some items of clothing stolen were worth up to $1000 each.
Snowboards and skis on display in the store were not taken, Snr Sgt Aitken said.
Police believed a large truck or van would have been needed to cart away the clothing.
