About 30 police officers including drug squad detectives and a sniffer dog handler raided the Palmer's Camp in Basso Road this morning.
They arrested three men in three separate houses and confiscated drugs as well as cash.
The Aboriginal town camp has been under police surveillance for some time and was known by users as "the Maccers Drivethrough".
Police are expected to make a statement with further details soon. ERWIN CHLANDA reports. SEE UPDATES IN "FULL STORY".