Huy Huu Lee, 45, has pleaded not guilty to two drug trafficking charges and to cultivating cannabis for sale after police allegedly uncovered a sophisticated grow house at Macgregor in late 2013.

He went on trial in the ACT Supreme Court on Monday.

In his opening address, prosecutor Shane Drumgold said Lee's alleged crimes were uncovered after he sold drugs to two NSW Police officers as part of a cross-border operation into cannabis supply in December 2013.

The court heard the officers met two suspects at Queanbeyan Bowling Club one morning and told them they wanted to buy cannabis.

The four met at a Macgregor house later that night where the police paid $16,000 to the accused, who was introduced to them as Bruce, for about 2.3 kilograms of cannabis.

The drug deal prompted ACT Policing to launch a probe into activities linked to a black Toyota Aurion car that was seen parked outside the Macgregor house at the time of the drug deal, which allegedly belonged to Lee.

Police suspected Lee was trafficking drugs after video and sound recordings allegedly revealed he had often sold cannabis to the same man in 2013.

They swooped on Lee after surveillance showed the man buying 2.7 kilograms of cannabis from the Macgregor house on December 15.

Police stopped Lee's car a short time later and found $234,050 in a toilet seat box on the back seat, the court heard.

During the search Lee allegedly told officers: "You can take whatever from the car if you let me go."

He was arrested and taken to the ACT watchhouse, where he is said to have told police: "I don't know how much was in that box but if everybody takes $50 that's a good holiday."

The court heard tax records indicated Lee's income was more than $47,000 in total between 2010 and 2013.

Mr Drumgold said the Crown would argue that money was the proceeds of trafficking cannabis and his actions in offering the money to police were an admission of guilt.

Police said they seized a suitcase and vacuum cleaner with traces of cannabis on them, as well as a set of scales, a cigarette butt and vacuum cleaner parts that allegedly had traces of Lee's DNA and fingerprints on them.

They also raided an unoccupied house next door and discovered a sophisticated hydroponic set up and 119 cannabis plants.

The court heard both houses belonged to a former colleague of the accused and they had been rented to acquaintances of Lee's using fake identification.

Defence barrister Shane Gill argued the prosecution case was objectionable.

The trial is set to continue before Justice John Burns on Tuesday.