We were planning to take some friends to Oatman to see the burros and remains of the town this September.... but someone told them not to go there, that it is now a hub for illegal drug labs, etc. 

We can't imagine that being true about this cute little ghost town full of tourists ... does anyone know if this is just a rumor?  Please say it isn't so!!!  We love this little place!

It's one of my favorite little towns too. Can't imagine that being true. I'd still drive up there anyay-- if the burros are hiding and there are no tourists, you can always just keep driving (the drive is as much fun as seeing the burros)!

I don't really "know" the answer to your question, but I searched "oatman az illegal drugs" in a few different search engines. They didn't bring up anything I found about Oatman having a drug problem. Unless somebody that's been there recently pops up here, I don't know how else to find out, other than maybe asking on one of the bigger camping/RV forums. You just need to be a little more thick skinned to spend much time on the bigger ones, as I've found people (not everyone) to be far "less friendly" than people are here.

I always wonder when I hear things like this from some person if they have the name mixed up or something. Oatman would be a lousy place to run drugs, it is slow going in and out and everyone knows everyone else. I suspect the person is painting all of Arizona with the same brush or has some other town in mind. Many people can't or don't keep their facts straight.

That's the thing with small towns.  Usually everyone knows everyone and nothing gets by unnoticed.  Lived in one in the Copper Country of Michigan and never felt safer.