Boston’s cannabis industry has experienced steady growth since Massachusetts legalized recreational marijuana in 2016, but its evolution hasn’t come without challenges. Chief among them are zoning laws — the city’s key regulatory mechanism that shapes where marijuana businesses, particularly distribution hubs, can operate. These laws, designed to balance community safety with economic development, play a critical role in determining which neighborhoods see cannabis commerce and which do not.
Strict Zoning Restrictions Limit Distribution Footprint
Boston’s zoning laws classify marijuana distribution under “Cannabis Establishments,” which must adhere to specific distance buffers. A marijuana facility cannot be located within 500 feet of K-12 schools, libraries that cater to children, and facilities where children commonly congregate. While these buffers aim to protect vulnerable populations, they significantly reduce the pool of eligible real estate.
This restriction is especially burdensome for distribution hubs, which need industrial-scale facilities. Unlike dispensaries that operate in commercial zones, distributors require access to loading docks, transport corridors, and warehousing infrastructure — all of which are often situated near public institutions or residential zones. The result? A limited number of qualified parcels, high competition for zoned properties, and inflated lease prices.
Industrial Zones: Limited Supply, High Demand
Boston’s industrial zones, particularly in neighborhoods like Dorchester, Roxbury, and East Boston are among the few areas where distribution hubs might be viable. However, these zones are already under pressure from other industries and new developments. The city’s push to transform industrial land into mixed-use and residential developments further tightens availability.
Zoning regulations also make it difficult to repurpose existing buildings. Many potential sites fall just short of compliance due to proximity to disqualifying institutions or because they sit outside approved overlay zones. For marijuana distribution operators, this means additional costs tied to zoning board appeals, community outreach, and land use approvals.
Community Host Agreements Add Another Layer
Even if a distributor finds a zoned property, Boston requires a Host Community Agreement (HCA) before the license application can move forward. These agreements allow the city to negotiate terms, including impact fees and community benefits, further complicating site selection.
Zoning intersects with HCAs in a unique way: neighborhoods with more political organization or vocal opposition can indirectly prevent cannabis distribution by lobbying against projects in the early zoning and HCA phases. This has led to accusations that Boston’s zoning framework and HCA system favor larger operators who can afford political consultants and navigate complex negotiations.
Social Equity Applicants Face Added Barriers
Boston has made efforts to support equity in the cannabis space, offering priority licensing for social equity applicants. However, zoning laws often disproportionately affect these smaller operators. Many lack access to the capital or legal resources needed to compete for compliant properties or successfully apply for zoning variances.
Some advocacy groups have called for reform — including zoning overlays specifically for social equity distribution hubs and loosening distance restrictions in underdeveloped industrial areas. While these proposals have gained attention, few substantive changes have been implemented as of 2025.
Conclusion
Boston’s zoning laws remain one of the most significant barriers to the expansion of marijuana distribution hubs. While designed to protect communities, they inadvertently create a high-stakes real estate race, hinder equitable industry access, and constrain supply chain efficiency. Without targeted reforms or zoning adjustments, cannabis distribution in Boston may remain limited to a handful of well-capitalized operators — leaving many small and equity-focused businesses locked out of a rapidly growing market.