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At the house, they found approximately $50,000 cash along with a large number of point bags, meth pipes, bongs, cannabis and two sets of electronic scales.
A 30-year-old Palmerston North woman has been charged with possessing methamphetamine for supply, possessing LSD for supply and unlawfully possessing firearms.
The woman appeared before a Justice of the Peace in the Hastings District Court on Thursday.
She has interim name suppression and was remanded in custody until October 30.
A 51-year-old Napier woman has also been charged with possessing methamphetamine in relation to the incident and was due to appear in court.
Head of the Eastern District Organised Crime Unit Detective Senior Sergeant Dave de Lange said police were becoming more and more concerned with the presence of children at drug-dealing houses and related activities.
"This is a major problem that police are having to deal with on a regular basis. These people obviously have no concerns for the safety or welfare of their children. They are exposing them to potential harm with very dangerous drugs and firearms. We will be working with social agencies to make sure this child is kept safe," de Lange said.