Zoning and Local Proximity Compliance

Where can I legally put my dispensary, and how close can I be to schools, churches, or other shops?

Choosing the wrong location is one of the fastest ways to lose time, money, and your license.

This page explains the location rules that determine whether a site is eligible at all, before you sign a lease or spend on construction.

Core Rules That Affect Your Location

At a minimum, your dispensary must:

  • Be located in a municipality that allows adult-use retail cannabis
  • Be in a zoning district that permits retail cannabis under local law
  • Meet state proximity buffers from schools and houses of worship
  • Meet state distance rules from other licensed dispensaries
  • Match the address and layout submitted to OCM
  • Complete required municipal notice correctly and on time

If any of these are violated, OCM can deny or delay your license — even if everything else is compliant.

Local Opt-Outs

Where You Cannot Open

Cities, towns, and villages were allowed to opt out of:

  • Adult-use retail cannabis
  • On-site consumption lounges

Rules to know:

  • If a municipality opted out of retail, you cannot open a dispensary there
  • If it opted out of on-site consumption, retail may still be allowed
  • Opt-out status is binding on OCM

OCM maintains the official opt-out list. Always verify status before signing a lease.

Signing a lease in an opt-out municipality means paying rent on a space you can never legally use.

Zoning Basics

State and Local Requirements

Your location must be permitted under both:

  • State cannabis regulations, and
  • Local zoning and building codes

In practice, this means:

  • The site must be in a commercial, mixed-use, or otherwise permitted zoning district
  • In NYC, this is typically C1–C6 districts or certain M districts that allow retail
  • Many municipalities impose additional rules, such as overlay districts or corridor limits

Zoning conflicts cannot be solved by explanation or hardship. If local code prohibits retail use, OCM will defer to that code.

Distance Rules

Schools, Houses of Worship, and Sensitive Uses

New York imposes mandatory buffers around certain locations.

State minimums:

  • At least 500 feet from a school
  • At least 200 feet from a house of worship

Important notes:

  • Measurements follow legal definitions, not walking distance
  • Property line and entrance-to-entrance rules apply
  • Google Maps estimates are not sufficient

Some municipalities add additional buffers for:

  • Parks
  • Libraries
  • Youth or community centers

Always check local law in addition to state rules.

Distance From Other Dispensaries

Density and Clustering Rules

OCM limits how close dispensaries can be to one another.

Key points:

  • State rules establish minimum spacing between licensed dispensaries
  • Distances may vary in dense urban areas
  • OCM evaluates license density to prevent clustering

If your site falls within another dispensary’s buffer:

  • OCM may deny or pause your application
  • Readiness or buildout status does not override proximity conflicts

Municipal Notice

You Cannot Skip the City or Town

Before applying for a license, you must notify local government.

Timing requirements:

  • Notice must be sent 30 to 270 days before application submission

Who must receive notice:

  • City, town, or village clerk where the premises is located
  • If inside a village, the village clerk
  • In NYC, the relevant community board

Acceptable delivery methods:

  • Certified mail with return receipt
  • Overnight delivery with proof
  • Personal delivery with written proof

If municipal notice is skipped, mistimed, or improperly delivered, OCM can deny the application.

What Goes in the Municipal Notice

Use OCM’s required form and include:

  • Trade name / DBA
  • Applicant’s legal name
  • Premises address
  • Mailing address (if different)
  • Attorney or representative contact (if applicable)
  • License type (retail, delivery, microbusiness, etc.)
  • Application type (new, transfer, renewal, alteration)
  • Any prior or related license number

Local officials may submit support or objection letters. OCM must include these in the application record and explain how they were considered.

How Zoning Ties Into Buildout and Inspections

Even after OCM approves your location:

  • Zoning approval does not replace building permits
  • Fire safety inspections are still required
  • The completed space must match approved plans and the OCM application

If your built space differs from:

  • Local approvals, or
  • The address or layout submitted to OCM

your final license can be delayed or denied.

Common Zoning and Proximity Mistakes

Operators run into problems when they:

  • Sign leases in opt-out municipalities
  • Choose locations too close to schools or houses of worship
  • Ignore dispensary-to-dispensary spacing rules
  • Rely on verbal assurances from landlords or brokers
  • Skip or mistime municipal notice
  • Assume borderline compliance will be accepted

Any of these can stall or stop a license — even with a strong application.

Why This Matters

Zoning and proximity errors are front-end failures.

They result in:

  • Application denial or pause
  • Months of lost rent and buildout costs
  • Re-application delays
  • Missed market windows

Location eligibility must be confirmed before any financial commitment.

Related Pages

Source Material

  • MRTA Section 76 (Municipal notice and local input)
  • MRTA Section 131 (Local opt-out provisions)
  • 9 NYCRR Adult-Use Application and Licensing Rules (Location and proximity)
  • MRTA
  • Revised Adult- Use Regulations