William Francis Wilson, of Lovett Avenue, Dubbo, pleaded guilty to one count of possessing a prohibited drug and one count of supplying the same drug at Dubbo Local Court on Wednesday.

According to court documents a member of the public contacted the police reporting drugs were being supplied from the 61-year-old disability pensioner's address.

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When police arrived at Wilson's home the facts state they immediately smelt a strong odour of cannabis being emitted from the unit.

Wilson admitted to having drugs in the house, and took police to a small coffee table in the lounge room and picked up a medium sized resealable plastic bag containing cannabis.

He then also pointed to a red container which contained numerous pieces of foil and told police, "I just did them up this morning".

Facts state Wilson said he had purchased one ounce of cannabis earlier that morning, but would not provide details of who he purchased it from or how much he purchased it for.

When police asked Wilson if he supplied drugs he said, "yes I do, I do tenners and 50s".

A total of 37.4 grams of cannabis along with $860 cash was found in Wilson's home.

Wilson's defence told the court he suffers from severe scoliosis to the point where his spine is dislocated and could not stand for long periods of time.

The court heard Wilson has been using cannabis as a pain relief for 17 years to "take the edge off the pain", his defence said.

The court heard Wilson had been convicted of the same drug offence in 2018 and funded his personal use by selling the drug to others.

Magistrate Gary Wilson said he was sympathetic to Wilson's need, however suggested he look at options to access legal cannabis for his health.

"That would save you, one being arrested, two breaking the law and three you wouldn't have to sell the drugs to support your need," Magistrate Wilson said.

"Things can only get worse, this is second round of the same charges for you.

"There's so many drugs in this community, we don't need people out there actively making it worse by way of selling, even if it is to support your need, there's no excuse whatsoever."

Wilson was convicted of both offences and placed on two 12-month community corrections orders.