Behind the scenes of an inner-city 'ice lab'

Seven News has obtained frightening footage from inside a Waterloo apartment, which was allegedly home to a clandestine drug lab.

The lab caught fire on Wednesday night, sparking an emergency that laid bare the secrets of the inner city apartment.

Neighbours were forced from their homes, and police who responded had to be treated for chemical exposure.

Police laid out exhibit after exhibit of chemicals and pre-cursers allegedly used to make the drug 'ice'.

The accused cook was exposed in Wednesday night’s chaos.

Resident Taylah Dwyer said all she could hear were “people screaming saying ‘get out’”.

‘When I looked out my balcony all I could see was people everywhere.”

Eight police officers were overcome by toxic fumes, two of them were sent to hospital for further treatment.

It is believed chemicals that were being processed in the kitchen triggered the blast.

The alleged lab was sophisticated and hidden on the rooftop, right under the noses of neighbours.

"It's been quite a shock to have known what's happened and how long it had been going on for really," resident Bianca Dawe said.

Police are astonished that the alleged lab was not uncovered earlier.

"In the middle of suburban Sydney is a clandestine laboratory. You know, that is frightening on all fronts," Drug Squad Commander, Detective Superintendent Tony Cooke said.

"This isn't just about dobbing people in and letting the cops know what's going on, this is about you contributing to your own safety.”

Detectives also seized cash.

They are facing a growing national threat.

"The Australian Crime Commission, working with our partners and police agencies, have identified in the order of between 700 and 800 clan labs per annum," Crime Commission CEO Chris Dawson said.

Aside from the fire damage, the chemical clean up of a drug lab can run into the tens of thousands of dollars and unassuming landlords are at risk of paying the price.

Police are convinced the injured tenant was not working alone.