A stungun 20 times more powerful than a police-issue device was found by Napier officers on a drugs and firearms bust.
The stungun, which can deliver a 100,000-volt jolt, was built by a company in the US, where they are legal in several states.
Police said they were alarmed to come across the devices, designed to look like a cellphone.
They are classed as a restricted weapon in New Zealand and unlawful possession can result in a jail term up to three years and a fine up to $4000.
The two houses police targeted were occupied by people police described as having "gang connections".