Two people were arrested, including 48-year-old Joanne Etheridge and 24-year-old Buddy Ray Wenner.
Both Wenner and Etheridge are charged with manufacturing a controlled substance, and possession of drug paraphernalia.
Neighbor Michael Estep says Etheridge owned the house on Tulls Creek Road, but lived with her father who suffers from Alzheimer's disease.
"I was over here a couple of days ago helping her mow her grass and I knew something was up because she wouldn't talk to me or anything - she just walked back inside," Estep says.
Another neighbor, Michael Galloway, says Etheridge was an engineer but he had no idea a meth lab was being run out of the house just feet from his own.
"We have a great neighborhood down here. We really do and to find out that there's a meth lab over there," Galloway said. "There's a lot of young kids here - quite a few on this street - so it's quite a shock."
Deputies were able to clean up the meth lab without incident with help from the North Carolina State Bureau of Investigation.
Wenner is in Currituck County Jail on $200,000 secured bond.
Etheridge is currently in the Chesapeake City Jail with no bond stemming from another unrelated charge.