Individuals and corporations seeking to become licensed
producers of cannabis are advised to pay close attention to
municipal land use permissions when conducting due diligence in
relation to the purchase of property for the purpose of setting up
their production facility.
The federal government is currently responsible for
administering Canada's cannabis production licensing process.
While the Access to Cannabis for Medical Purposes
Regulations, SOR/2016-230 require prospective licensed
producers to notify local authorities before submitting an
application for a producer's license, municipalities are not
involved in the approval or consultation process. Despite their
limited involvement in the licensing scheme, however, it is
important to acknowledge that municipalities have authority over
land use regulation and have the power to prohibit and regulate
certain uses through zoning by-laws. Licensed producers are
required to obey municipal zoning by-laws and a Chief
