POLICE have uncovered a drug laboratory in a block of units at South Grafton.
A man and women have been arrested and taken to Grafton Police station.
Police said the laboratory was been used to refine amphetamines which is a very dangerous process in terms of the potential for explosions.
"It is a high risk activity because the process and the drugs are volatile," said a police spokeswoman.
"In this case because the laboratory was located in a block of units the perpetrators have placed not only themselves at risk but also members of the wider community."
There were children's bikes out the front of one of the units directly adjacent to where the lab was allegedly located as well as other signs that children lived in the block of flats.
The Coffs/Clarence area recorded the highest number of drug labs of anywhere in the State over the past year said police.
"The Coffs/Clarence has recorded the highest number of clandestine laboratories over the last year," said police spokeswomen.
Update 11am, Friday, October 10
Woman in hospital, gun found
POLICE found a handgun at the Federation St flat where an alleged amphetamine laboratory was discovered yesterday.
The 31-year-old woman charged with the matters above is not expected to appear in Grafton Local Court today due to medical reasons.
The woman was taken to Grafton Base Hospital this morning after an unknown "turn".
Police have refused bail for both the woman and her partner, a 37-year-old man, who is facing similar charges.
The man is expected to appear in court today.