Rhys Bromley Munro-Manu and Rodney-John Akavi Ngatikao have been in police custody since being arrested last week.
Crown prosecutor Kathy Bell said Ngatikao was importing cannabis from New Zealand and dealing it on the island.
She opposed bail, asking High Court Judge Colin Doherty to delay it until August 15. Her reasons were suppressed by the court.
Bell asked that they surrender their passports and be banned from associating with each other.
Defence counsel Norman George said Manu was arrested only after police first got him off his motor vehicle, searched him and alleged that they found 12 cannabis-rolled like cigarettes in his possession.
George said that under the Narcotics and Misuse of Drugs Act, the quantity of drugs one must have to be in custody is at least five grams, equivalent to more than 100 cigarette rolls of the drug.
But Judge Doherty said that was a presumption, as one could still be a dealer with just one roll.
Manu is bailed on the condition he does not apply for a passport and does not leave Rarotonga without the approval of the Court.
Ngatikao is bailed on the condition he surrenders any travel documents and must not apply for a new passport, as his passport is expired.
Both the accused are ordered not to associate with each other.
They will be bailed on August 15 and are to appear in Court on September 19.