Zoning Basics for Arizona Entrepreneurs

Starting a Business in Arizona? Don’t Skip the Zoning Step

If you're ready to launch a small business in Arizona — whether it’s a boutique, bakery, or home-based Etsy shop — there’s one key step you can’t afford to overlook: zoning laws.

Zoning might not be the most exciting part of entrepreneurship, but it's absolutely crucial. The right zoning approval can get you up and running smoothly, while the wrong setup could lead to delays, fines, or worse — a forced shutdown.

Here’s a beginner-friendly breakdown of how zoning laws work for small businesses in Arizona.

What Is Zoning, Anyway?

Zoning laws determine how land can be used in specific areas. These laws are set by cities and counties, and they help organize:

Residential zones

Commercial zones

Industrial zones

Mixed-use areas

Agricultural and rural areas

So if you're opening a business, your property must be located in a zone that allows that type of activity.

Common Zoning Categories That Affect Small Businesses

Here are the zoning types most Arizona entrepreneurs need to know:

Residential Zoning (R): Generally for homes only, but some home-based businesses are allowed with limitations.

Commercial Zoning (C): Allows retail shops, offices, and some restaurants.

Industrial Zoning (I): For manufacturing, warehouses, and heavy commercial use.

Mixed-Use Zoning (MU): Combines commercial and residential — often seen in walkable downtown areas.

Each city in Arizona — like Mesa, Gilbert, Chandler, and Phoenix — has its own zoning codes and definitions, so always check locally.

Can You Run a Business from Home in Arizona?

Yes — but there are rules.

Most Arizona cities allow home-based businesses, often called “home occupations,” as long as you follow zoning restrictions. Here’s what to keep in mind:

No visible signage on the home

Limited traffic or customer visits

No outdoor storage or noise

Some cities require a Home Occupation Permit

Tip: Check your city’s website and search for “home occupation permit” or “home-based business zoning.”

How to Check the Zoning for Your Property

Before signing a lease or launching from home, you need to verify the zoning.

Visit your city or county’s planning and zoning department website

Use the zoning map tool to enter your address and find the zone code

Contact a zoning officer if you're unsure — they can confirm whether your business type is allowed

Popular East Valley resources:

Mesa: mesaaz.gov/zoning

Chandler: chandleraz.gov/zoning

Gilbert: gilbertaz.gov/zoning

Tempe: tempe.gov/zoning

What If Your Business Isn’t Allowed in That Zone?

You might still have options:

Apply for a zoning variance – This is a special exception

Request a conditional use permit (CUP) – For certain business types with specific conditions

Find a property already zoned for your business type

Always ask before you act. Making changes or moving later is usually much more expensive and time-consuming.

Zoning Isn’t Just About the Type of Business

Other factors may affect your zoning compliance:

Parking requirements

Building modifications or signage rules

Distance from schools or residential zones (especially for restaurants, salons, or retail)

Noise, lighting, and delivery hours