The man, who was granted interim name suppression, faced six charges, including possession and supply of methamphetamine and unlawful possession of a firearm.
He also was charged with failing to assist a police search.
Judge Russell Walker remanded him on bail until his next appearance on December 14 at the Queenstown District Court.
Conditions include a curfew from 7pm to 7am, random drug testing when required by court and an order not to consume any illicit drug.
He also had to hand over his passport and could only leave the Wanaka area for court hearings or to meet his lawyer.
Judge Walker said his name suppression application would be reviewed at the next hearing.
Detective Sergeant Derek Shaw, of Central Otago CIB, earlier said the man was arrested in Queenstown on Friday night
He said the arrest was the culmination of a two-month-long investigation into the supply of illicit drugs in the area.
Police also searched a Lake Hawea property. Methamphetamine, cannabis and three firearms were recovered.
"With this operation police have caused significant disruption to a national supply chain that has been responsible for immeasurable harm," Det Sgt Shaw said.
