"Love thy neighbor," the Bible tells us, but drug-dealing neighbors are a threat to the health and safety of everyone. The problem lies not with the neighborhood kids who want to get high, but those who sell their souls, their prescription medications, their children, their homes, not to mention their possessions and yours (by theft) to make the money-launderers rich. Therefore, the first step in any kind of program to rid your neighborhood of drug dealers is to 1) keep the lines of communication open with community leaders who can help; and 2) understand that most folks who are involved really do not want to be involved either, given a choice.
Poverty is probably one of the biggest motivations for drug dealers. Homes, cars and even food are simply out of reach to many who are unable to hold a regular job for one reason or another. The gangs and cartels move into blighted areas and offer people some kind of warped sense of security that they would otherwise not be able to experience. Sometimes victimized people are chronically ill, aged, incompetent or otherwise dependent upon others. They often have a history of abuse or control by others as children or simply lack self-esteem. When independence is lost, illegal outsiders encroach upon the neighborhood turning the already traumatized terrain into trash-filled yards and grandma's pad into some kind of bootleggers' barrio.
Drug-dealers come in all genders, ages, incomes and educational levels, however they all have one thing in common. Stupidity. These are not inherently bad people, just folks who cannot see their way out of a desparate situation and why counseling, financial aid, rehab, and police enforcement that can show them there are consequences to risky behavior are all so important. You will be able to tell if your neighbors are dealing drugs by watching 1) traffic (car and on foot), 2) smells, 3) health and 911 calls (ambulance and police), 4) sounds such as loud parties, car honking and shouting signals, running water to feed pot gardens and make meth, and high electrical useage (check meters and extension cords feeding off of others' power).
Evidence is helpful in reporting these kinds of crimes. You can do this by monitoring your local jail inmate rosters for those who have been picked up for minor drug offenses and making copies for the authorities. You can monitor your state's court records to see what kind of track record these folks have or if they are monitored sex offenders. Porn and drugs go hand-in-hand. If you have a cell-phone camera you can take pictures of suspicious activity - from a distance - and write down car license plate numbers to get a feel for who the movers and shakers are. Finally, start a block watch or conversation with community leaders. Animal control, code enforcement, social services, food-banks and churches, and city management will be more effective than the DEA.
Never, ever confront these folks on your own. The higher up the chain of command the more aggressive and violent they become because this is their livelihood and gives them a sick sense of importance and meaning to their lives. I have had drug dealers hit and run my car, set up elaborate sting operations to entrap and in some cases law enforcement have their own involvement be it money or undercover informants, so stay clear of them all. The best way to deter drug dealing crime in the neighborhood is to 1) not participate and let them know there are alternatives; and 2) keep account for possible civil damages. Nothing deters these folks more than to speak their language - money. If they think that you have a way to take it either by the bail, impound, personal injury damages, restitution, victim witness, bounty hunting or their involuntary rehabilitation they disappear like cockroaches who have had the light turned on. Prayer and a little Karma help too. Drug dealers always end up hurting themselves in the end by car accidents, overdoses, loss of possessions or repossessions because their friends are thieves and drug-dealers too. Never give up hope because God loves them too, maybe even more so because they are so far from God.