Hidden local considerations for Virginia cannabis businesses
March 2, 2026
Without a doubt one of the biggest barriers for entry for aspiring cannabis business owners is not related to statewide (or in Virginia’s case, commonwealth-wide) licensing but is actually everything that goes on at a local level. Here are some key considerations and background to bear in mind in these early days of adult-use cannabis legalization in Virginia.
Background on local restrictions
We have some good news on this front! Many states have allowed counties or municipalities to opt-out of allowing cannabis operations in their boundaries. California is one of the most famous and most mature cannabis marketplaces in the country, but 53% of the state’s cities and counties don’t allow for any type of cannabis business. 57% don’t allow retail operations either.
Thankfully, this won’t happen in Virginia. Both legalization bills (SB542 and HB642) have specified that they will not allow counties or municipalities to bar cannabis businesses from operating within their boundaries. This means there will be no “dry counties” for cannabis in Virginia. But…
Not all localities want cannabis
If there’s a will, there’s a way. There are mechanisms in place for cities, towns, and counties that, even if they are unable to outright prohibit cannabis operations within their jurisdictions, they can make it difficult if not impossible to actually open. This can include additional distance requirements between retailers or specific locations such as any place of religious worship, hospitals, or schools.
The most recent bill languages state that there is to be a 1,000-foot buffer between retail and microbusiness licenses and any of the following:
Place of religious worship
Hospital
Public, private, or parochial school or institution of higher education
Public or private playground or other similar recreational facility
Child day program
Substance use disorder treatment facility
Federal, state, or local government-operated facility,
Now, municipalities can adopt an ordinance to decrease this minimum distance requitement. But that is if a municipality is amenable to cannabis. Not all are. Zoning hurdles can abound as could longstanding delays with inspections and any other local approval needs. If a municipality doesn’t want cannabis, they will make sure to dissuade or be as hostile as they can towards prospective business owners.
An example of this that we have seen: several municipalities in New Jersey, seeking to block cannabis businesses from opening in their boundaries, simply stated in their ordinances that in order to operate they needed state approval first. However, the state would not give final approval for operations until they have received approval of operations from the local government. This created an intentional Catch-22 situation for operators and effectively barred cannabis businesses from operating.
You don’t want to find yourself in a similar situation!
How we can help
We are more than familiar with identifying the right municipalities to open in and who to contact when seeking local support. Given how slow local governments can sometimes operate, the sooner to get started with this, the better.
We can scope out one, two, three, or a dozen areas across Virginia to find the ideal spot for you and your business prospects to call home. Getting in touch with and staying on top of municipal ordinances, planning boards and commissions, and town managers is an often-overlooked aspect in the pursuit of successful operations, and we’re here to help with exactly that.
At Square Deal, we offer the best cannabis industry consulting for new and upcoming cannabis businesses in states (or commonwealths) like Virginia. Doing it on your own is one path but doing it with the experts simply ensures a higher level of success and professionalism in an incredibly competitive marketplace.
Start with business planning to assess your strengths and opportunities or look into how we can assist with financial feasibility for startups (a likely requirement for licensure). These and other services, including deep dives into local considerations, are all available.
Book a consultation with Square Deal today and see how we can help with all your local considerations and help to ensure a smooth and opening for your cannabis business.