A Palma and National Police joint operation on Thursday resulted in the dismantling of the wire fence "fortification" that had been installed at the Son Banya shanty town.
The fence had been intended to prevent police entering and to facilitate the sale of drugs at what is often referred to as Mallorca's "drugs supermarket".
Town hall personnel were given cover by the police so that they could bring down the fence and wooden panels that had been erected and also carry out some decontamination work.
The drugs squad, meanwhile, carried out searches at three known sales points and seized significant quantities of drugs.
The town hall has initiated proceedings against those responsible for putting up the fence; it was in breach of planning regulations.