Police stopped a car on Victoria Parade during a routine traffic stop and spoke to a 27-year-old local man who was subsequently searched.
Cash, methamphetamine and scales were found in his bag.
The passenger was arrested and charged with possessing a controlled drug for sale.
He was refused bail and was due to appear in the Port Augusta Magistrates Court.
In other police news, a 47-year-old Port Augusta man was caught drink driving almost four times over the legal limit on Pybus Street.
The man was stopped and submitted a breath test, recording an alleged reading of 0.196.
He lost his licence on the spot for 12 months and was reported for drinking driving. His car has been impounded for 28 days.
The man will appear in court at a later date.