Bahrain's Interior Ministry wrote on Twitter early Tuesday that the operation targeting Diraz was to "maintain security and public order”, AP reported.
It called the area a "haven for wanted fugitives from justice."
It's unclear who the raid is targeting. Authorities offered no other details.
Activists shared images of lines of police cars outside of Diraz.
The operation follows a Sunday court decision giving prominent Shiite cleric Sheikh Isa Qassim a year's suspended prison sentence and seizing assets belonging to him . Two of his aides received similar sentences.
The moves come amid a major crackdown on dissent in Bahrain.