Samuel Kerin, 28, was charged by police with supplying prohibited drugs on an ongoing basis, obtaining financial advantage by deception, and a number of drug supply offences on Tuesday.

According to court documents, Kerin allegedly knowingly took part in the supply of 56.6 grams of methamphetamine between October and November this year.

Police allege he also supplied 5.25 grams of ice on other dates in October, and also allegedly organised a drug premises at a property on Pinnaroo Place.

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Sometime between October 23 and 28, police also allege Kerin intentionally set fire to a Toyota Hilux to obtain $22,500 through a fraudulent insurance claim.

When applying for bail on Wednesday in Dubbo Local Court, it was revealed Kerin was also disputing multiple firearm charges.

According to court documents, Kerin pleaded not-guilty to five firearm offences, including using a prohibited weapon, allegedly possessing an unauthorised firearm, while subject to a firearms prohibition order on November 17.

Defence lawyer Jai Silkman said the police fact sheet detailing Kerin's alleged drug crimes made it "difficult to grasp" the strength of the prosecutions case against his client.

He said it would be challenging for police to prove guilt.

"There's nothing in there to indicate how surveillance was undertaken," Mr Silkman said.

"If police are relying on telephone intercepts or listening devices, coded language and things like that.

"There's no details of how he is identified."

Mr Silkman said the butcher shop owner had denied involvement in the supply of drugs and came before the court with no history of drug-related offences.

He said his client was not a risk factor, owned his own home and was in the process of moving his shop.

"I've spoken to Mr Kerin's parents and they would be willing to put up a surety of up to $5000 if the court required," he said.

However police prosecutor Sergeant Michelle Bartlett said the police case against Kerin was strong.

"He is a self-confessed drug user, that is the motivation for the supply of drugs, to support his own habit," she said.

"It is a known fact that supplying drugs in a community like Dubbo has absolutely devastating and far-reaching effects."

Sgt Bartlett told the court Kerin was serving a term of imprisonment in the community, in the form of an intensive corrections order, at the time of his alleged drug dealing offence.

She said there was "a very real possibility a term of imprisonment" behind bars if Kerin was convicted.

Magistrate Theresa Hamilton said Kerin had been given bail on the "serious" firearm charges, which he hadn't breached.

She said while he didn't have a history for this type of offending, he had been previously fined for possessing firearms.

"I agree that a custodial sentence is a likely outcome if he's convicted of these offences," she said.

"It's likely to be some time until these issues are fully resolved."

Magistrate Hamilton granted bail, with conditions attached which she said would "mitigate the risk of reoffending".

Kerin was given bail, to report daily to Dubbo Police Station and an acceptable person must deposit $3000 as surety.

The matter returns to court in December.