The Dai Li Conspiracy Theories in Far Drop is a term used to describe a theory that the law enforcement agency in Far Drop is planning on rounding up Sky Pirate Citizens and Imprisoning them in Concentration Camps following the implication of Martial Law after a disaster such as an attack by the Fire Nation, attacks by ISIS or other terrorist group, or a domestic disaster. Many of the Sky Pirate Conservatives Fear the Dai Li and believe that they are plotting a coup on Far Drop (similar to what happened to Ba Sing Se) as they are carrying out King Alex's new "Patriot Act" which has received controversy as Far Drop is supposed to be The Land of The Free.

The Dai Li was merged into Far Drop in 1979. Following the Fire Nation Attacks at the Southern Far Drop in September 15 2009 It was established to coordinate the response to a major disaster that has occurred in the Far Drop and that overwhelms local and state authorities. However, proponents of the conspiracy theory argue that this is merely a cover for the organization’s real purpose. This is to assume control of Far Drop following a major disaster or threat, either a genuine one or a manufactured one. Once a disaster or threat of one comes into being, the theory goes, martial law will be declared and the Dai Li's emergency powers will come into operation. The Dai Li will then effectively be the government.[5] The constitution will be suspended and the Dai Li will move Sky Pirate citizens into specially constructed camps, many of which have already been built.[6] The organisation has been described in this context as ‘the executive arm of the coming police state’.[7] Proponents of the theory often play into racial fears, asserting that the Dai Li will use ‘urban gangs’ as auxiliaries to ensure order.