Kaitaia Police arrested eight people and seized methamphetamine and cash on Sunday.
Northland District Organised Crime Co-Ordinator Detective Senior Sergeant Kevan Verry said in a statement that police came across an incident on Allen Bell Dr shortly before 8am.
Sergeant Verry said there was an altercation between a group of people in a vehicle with armed weapons and the occupants of a nearby house.
Police found a firearm inside the vehicle.
Four people were arrested, two of which are Black Power gang members, and charged with unlawful possession of a firearm, unlawful possession of ammunition and possession of an offensive weapon.
Further inquiries lead to several search warrants executed on Sunday afternoon.
Police found a stolen vehicle, 117 grams of methamphetamine, $88,000 cash and other evidence of alleged significant drug distribution.
A further four people were arrested and charged with possession of methamphetamine for supply.
"Whilst removing the 117 grams of methamphetamine from Kaitaia is great for our community, the large amount of cash seized shows the harm that has already been caused," Det Snr Sgt Verry said.
"It’s disheartening knowing such a large amount of money has allegedly been spent on purchasing drugs in a community that is facing a number of social challenges and has a number of people dealing with drug addiction."
All those arrested appeared in the Kaitaia District Court on Monday.
“Police is committed to disrupting the activities of criminal gangs in the Far North and we continue to ask for the communities support through the sharing of information," Det Sgt Verry said.