Drugs were being prepared at the Westgate home of a 20-year-old woman, police officers discovered.
Danielle Keaveny, formerly of Westgate in Grantham but now living in St Rumbolds Street, Lincoln, admitted a charge of knowingly permitting or allowing to take place on the premises, the preparation of opium for smoking.
The court heard how police officers spotted a drug deal taking place in Stanton Street, Grantham. The officers made arrests and recovered eight wraps of heroin.
As a result, officers executed a search warrant at the home of Keaveny in Westgate where various drug paraphernalia was found.
In her interview Keaveny admitted using heroin and said she allowed her home to be used for the preparation of drugs in exchange for drugs.
Kate Hartley, prosecuting, said: “She gets a bag of heroin in return for letting her room be used.”
Two males have also been charged in relation to the incident.
Bill Fraser, defending, said the arrest has forced Keaveny to leave town.
He said: “She and her partner have moved out of Grantham to live in Lincoln because they were getting threats from other drug people in Grantham.”
Mr Fraser described Keaveny as “on the periphery of what was going on” and said she was not involved in the process of dealing the drugs.
Keaveny was also found to have breached a conditional discharge for stealing make-up from Boots.
The case was adjourned until February 11 for reports.