Two 23-year-old women were arrested on Thursday on suspicion of possession of class A, B and C controlled drugs with intent to supply.
It followed a seizure of drugs in Newry’s Richmond Court area on Wednesday evening.
Cash and drugs in tablet, liquid, powder and resin form were uncovered.
Chief Inspector Davy Beck said: “At this early stage, the initial estimated value of the seized drugs is thought to be about £10,000.
“Local police are working hard to keep people safe in the area and this operation shows that where we suspect criminality is taking place, we will act proactively and decisively.
“I’d appeal to anyone who has any information on drug misuse in the area to contact Ardmore police station on the non-emergency number 101.”
Alternatively, ring Crimestopppers on 0800 555 111.