Sioux Falls allows medical cannabis dispensaries only in specified commercial and industrial zones with buffer requirements, under city ordinances implementing SDCL Chapter 34-20G.
Voters approved Initiated Measure 26 in 2020, legalizing medical cannabis in South Dakota under SDCL §34-20G. Sioux Falls amended its Shape Sioux Falls zoning code to permit medical cannabis dispensaries as a conditional use in specified C-3, C-4, and I-1 zones, subject to buffers from schools, daycares, and parks. Dispensaries also need a state license from the SD Department of Health. Recreational sales remain illegal statewide after Initiated Measure 29 failed in 2022 and Initiated Measure 25 failed in 2024. Local approval is on top of state licensing, not in place of it.
Operating a dispensary without both a state license and a Sioux Falls conditional use permit, or violating buffer rules, triggers cease-and-desist plus possible license revocation.
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See how Sioux Falls's dispensary zoning rules stack up against other locations.
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