SDLP Cllr Declan McAlinden said local people in Lurgan's Kilwilkie estate were furious after the bag of white powder was found outside Drumnamoe Nursery School.
Cllr McAlinden said: "Thankfully, the contents were secured until the PSNI arrived to confiscate the item and have it properly disposed of.
"I will not state the obvious as I am sure most of us can imagine the consequences of a child picking this up.
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"My SDLP colleagues and I would appeal to those profiting from this activity to stop and think of the damage and destruction they are causing to individuals and families within the community.
"My thanks go to the person who lifted the drugs off the street to ensure that they didn't land in the hands of anyone else," said Cllr McAlinden who urged anyone with information to contact the police on 101 or call the Crimestoppers number anonymously.