Some 17 search warrants were executed between November and February this year and about a dozen arrests made.
A number have been charged with drug-related offences and money laundering, with more charges expected to follow.
The move follows concerns raised by residents about drug dealing and anti-social behaviour.
There were claims that children as young as 11 have been involved in drug running or serious anti-social activity associated with drugs gangs – but police said there was no evidence of this.
The constabulary said the raids and patrols by uniform and plain-clothed officers had ‘disrupted and deterred’ criminal activities in the area.
A police spokesman said: ‘Following community concerns regarding drugs dealing and anti-social behaviour in the south Douglas area, the constabulary has executed a large number of search warrants obtained in accordance with the Misuse of Drugs Act 1976.
‘This has resulted in the criminal activities of those involved being disrupted and deterred.
‘Further to this, the constabulary has also conducted both plain clothes and uniformed proactive patrols in the south Douglas area, which has again disrupted and deterred those involved in such criminality and provided reassurance to the local community.’
One resident who contacted Isle of Man Today said teenagers and young adults were involved in ‘out of control anti-social behaviour’ – with major incidents in the area having increased in recent months.
He said children as young as 11 were involved.
The police spokesman said there was no evidence of this.
He said: ‘The constabulary will continue to listen to the concerns of the local community and will act in a robust manner to deter, disrupt and bring those involved in such criminality to justice.
‘In addition to this, we will continue to work with our partners in our joint mission of keeping the island as safe as possible. An example of such working is the installation of CCTV in the south Douglas area.’
He urged the public to report their concerns by ringing police headquarters on 631212, contacting the local community team via the live chat function on Facebook Messenger or alternatively by ringing Crimestoppers anonymously.