Alcohol is certainly common, but unless you count students pounding coffee in the library, a drug scene is almost non-existent. As far as alcohol goes, yes, people do drink, but no one is going to judge you if you don't. Drinking violations are a slap on the wrist and result in fines and community service depending on the specific infraction. With drugs, the consequences are more dire—even for smoking pot. That said, most student have not come into contact with any drugs more serious than marijuana. Nonetheless, even getting caught with pot will result in losing housing privileges on campus.
At a "work hard, play hard" school like Wake Forest, it is no surprise that alcohol is ubiquitous. In recent years, the administration has adapted a policy to tolerate safe and responsible behavior from students rather than completely clamp down on underage drinking. This does require a certain amount of discretion and responsibility from Wake Forest students, but it has seemed to work well.