Drug and Firearms Squad detectives have charged 59-year-old Michele Annette Wilder for her alleged involvement in a $3 million drug manufacturing and supply syndicate in Port Stephens.
Detectives will allege in court that Wilder helped source glassware and chemicals for the lab.
On Saturday, Wilder was denied bail after the court heard she allegedly told police she was supplying drugs to make money.
Police prosecutor Sergeant McIlveen said the charges against Wilder carry a maximum penalty of life imprisonment with a non-parole period of 15 years.
Sergeant McIlveen argued the prosecution has a "strong case" including communication intercepted by police and alleged admissions made by Wilder.
Legal Aid solicitor Nicahla Ivey-Hamilton argued her client should be granted bail due to her limited criminal history, the length the matter may take to go through the court process and her vulnerabilities.
Ms Ivey-Hamilton said Wilder suffers from mental health issues including anxiety and PTSD and lives with diabetes.
She said that prior to her arrest, Wilder was working in admin at NSW Health but would "likely be stood down" and have to rely on Centrelink as a result of the charges against her.
The court heard Wilder allegedly sourced equipment to manufacture the drugs over a 14-month period and gave false information when she was purchasing the items.
Strike Force Korpisalo was established in March by the State Crime Command's Drug and Firearms Squad's Cannabis Chemical Diversion Team to investigate the illegal supply and misuse of chemicals and lab equipment for manufacturing prohibited drugs in the Port Stephens area.
On June 25, strike force detectives executed search warrants in Salamander Bay and Boat Harbour, where police seized 64 kilograms of prohibited drugs with an estimated street value of $2.66 million.
Detectives also seized chemical containers and liquids for what they allege was a clandestine lab.
Two men have been charged and remain before the courts.
After further investigations, strike force detectives arrested Wilder about 10am at East Maitland on Friday.
Shortly after her arrest, detectives executed a search warrant at an Aberglassyn home with help from Raptor Squad.
During the search, police allegedly seized 42 grams of methylamphetamine and $1750 in cash.
Wilder was taken to Maitland Police Station where she was charged with manufacturing a large commercial quantity of a prohibited drug, supplying drugs and dealing with the proceeds of crime.
She was refused bail on Saturday and will face Newcastle Local Court on September 9.
