Green water smelling of drugs pouring from the back of a truck led to the seizure of 78 cannabis plants on Monday, according to court documents.
Following the incident, Andrew James O'Keefe, 23, and Adam Jabal, 23, both appeared before the ACT Magistrates Court facing charges of growing and trafficking cannabis.
A police statement of facts tendered in court on Tuesday said officers stopped a truck driven by Jabal, of McKellar, on Mulligans Flat Road about 1.30pm on Monday after seeing water pouring out of the back.
On closer inspection, officers observed green water smelling heavily of cannabis pooling under the vehicle and running down the road.
An examination of the truck allegedly discovered about 78 mature cannabis plants in the cargo bay at the rear of the vehicle.
The courts document said police had begun following the truck after spotting it at a Charnwood property earlier in the day.
O'Keefe, of Spence, is alleged to have delivered the vehicle to a McKellar address where Jabal then became the driver.
Officers then raided the Charnwood house and arrested O'Keefe, who allegedly attempted to escape arrest by jumping the back fence.
Police said a search of the property uncovered a sophisticated hydroponic set-up in two rear sheds, which included pots, heat lamps, soil, a water system and modified electrical connections.
Jabal and O'Keefe formally entered pleas of not guilty and applied for bail.
But the prosecution opposed their release, arguing the defendants could interfere with witnesses and flee the jurisdiction.
O'Keefe's defence lawyer, Michael Kukulies-Smith, said his client was not a flight risk as he had strong family and business ties to the territory.
Mr Kukulies-Smith argued there was no evidence his client would interfere with the investigation or witnesses and any risk could be managed by bail conditions.
Jabal's lawyer, Kamy Saeedi, said his client was prepared to pay a surety to ensure he would co-operate with court orders.
Magistrate Bernadette Boss agreed to grant bail and both men must report to police three times a week, provide $1000 surety and adhere to a strict curfew at night.
They are banned from contacting each other and two witnesses.
The matter will be back before the court in September.