Palm Desert, CA Cannabis Regulations: Dispensary Zoning (2026)

The City of Palm Desert permits commercial cannabis through a conditional use permit rather than banning it. Section 25.34.120.C.1 caps the City at six conditional use permits for retail cannabis businesses. If more applications arrive than the cap allows, selection follows a process and criteria set by City Council resolution. Subsection D.1 lets commercial cannabis businesses operate in the commercial, industrial, office and downtown districts listed in Sections 25.16.030 and 25.18.040, except the Downtown Core Overlay District, and only after the applicant holds a conditional use permit, a regulatory permit and a state license.

Storefront retailers narrow further to the PC-1, PC-2, PC-3 and PC-4 districts and the Downtown (D) District. No more than three retail cannabis businesses can sit on any single street, and no more than one can locate on El Paseo, which must be east of Larkspur Lane. Distribution businesses are conditionally permitted only alongside a storefront retailer and are limited to the physical location both uses occupy. A delivery service with a physical address outside the City needs a City business license but no conditional use permit.

Every operator needs three layers: the conditional use permit, a regulatory permit under Chapter 5.101, and a state license for each commercial cannabis business use. Building permits for improvements can issue once the conditional use permit and regulatory permit are in hand, but the certificate of occupancy waits for proof of the state license. A change in state license type, business owner or operation requires an amendment to the conditional use permit. No permit issues where covenants, conditions and restrictions clearly prohibit the use. Applicants pay an application fee set by City Council resolution and sign a reimbursement agreement covering City attorney and consultant costs. The Planning Commission can deny, suspend or revoke a permit for false statements, a lapsed state license, code violations, unmet permit conditions or a public nuisance.