The Armed Offenders Squad has seized a Mongrel Mob gang house in Dunedin under the Criminal Proceeds Act.
Detective Inspector Steve McGregor says it is the first time a house has been seized in the southern region under the legislation, which came into force in December last year.
Police used stun grenades to gain entry to the house in Middleton Road, in the suburb of Corstorphine, about 7.30am on Friday.
Officers had search warrants for illegal drugs and property and left with two air rifles, an imitation pistol and what is described as a dangerously modified baseball bat.
One of the two gang members found at the house was arrested and will appear in court on drugs charges.
Police hope the seizure of the house will make the suburb a safer place to live.
Mr McGregor says the gang's presence has contributed to a climate of fear in the community and he hopes this will go a long way to easing local concerns.