Marcel Mullings, 19, was arrested by the Community Action Team in the Eastfield Road cemetery on July 31.
The officers were on patrol in the area when they saw what they suspected to be a drug deal.
Mullings was detained and searched when officers found two mobile phones on him, more than £1,000 in cash and 57 wraps of crack cocaine and heroin worth up to about £570.
He was arrested and taken into custody at Thorpe Wood Police Station where it was later established he had given a false name and address.
Mullings, of Beckbury Avenue, Wolverhampton, was charged with possession with intent to supply crack cocaine and heroin, as well as perverting the course of justice by providing false details to police.
Yesterday, October 15, he appeared at Peterborough Crown Court where he was sentenced to 27 months in prison.
DC Hannah Connolly said: "This was a great spot by our Community Action Team who, as a result of their interception that day, have removed a drug dealer from our streets and ultimately further disrupted the drugs market which we are working hard to crack down on here in Peterborough."
Anyone with information about the supply of drugs can report it online here.