Four men have been arrested by police investigating the distribution of leaflets which blamed Muslim communities for the heroin trade.
The leaflet was sent to hundreds of households in parts of Lancashire, Cumbria and Yorkshire earlier in 2008.
A decision by the Crown Prosecution Service (CPS) not to pursue any action in September was criticised by the National Association of Muslim Police.
The four men were arrested on Wednesday and later released on bail.
Police said the men, aged 41, 43, 53 and 57, were from Burnley, Blackburn, Preston and Nelson respectively.
They were arrested on suspicion of the publication and distribution of written material intended to stir up racial hatred, and the possession of racially inflammatory material.
"Back when we were originally investigating it was unclear whether the distribution of these leaflets constituted a criminal act"
The leaflet said Muslims were "almost exclusively responsible" for the manufacture, transport and sale of heroin, 95% of which it said came from the Afghanistan and Pakistan region.
In September, the CPS said its contents were "racist" but advised police that no criminal act had been committed.
However, Lancashire Police continued their investigations and made the arrests on Wednesday.
"Back when we were originally investigating it was unclear whether the distribution of these leaflets constituted a criminal act," a spokeswoman said.
"However we have continued to closely monitor the situation and today's arrests will allow us to establish the full picture and determine whether any offences have been committed."
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