One suspect has been arrested and has been taken to the PACE custody suite at Strand Road Police Station for questioning under the 1971 Misuse of Drugs Act.
He could face charges in due course of possessing Class A and Class B drugs with intent to supply.
PSNI Foyle say: “Ballyarnett Neighbourhood Policing Team on patrol followed their gut instincts and conducted an arrest and house search.
“They found approximately £1,700 of heroin and £235 of herbal cannabis.”
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