Zoning refers to municipal or local laws or regulations that govern how real property can and cannot be used in certain geographic areas. For example, zoning laws can limit commercial or industrial use of land in order to prevent oil, manufacturing, or other types of businesses from building in residential neighborhoods. These laws can be modified or suspended if the construction of a property will serve to help the community advance economically.

Zoning allows local governments to regulate which areas under their jurisdiction may have real estate or land used for particular purposes.

Examples of zoning classifications include residential, commercial, agricultural, industrial, or hotel/hospitality, among other more specific designations.

Zoning laws can be changed by a local government as long as they fall within state and federal statutes, and a particular plot of land may be re-zoned based on consideration.

Zoning outlines what types of developmental and operational use of land is allowed on a given tract. Municipalities tend to partition districts and neighborhoods according to a master plan. This may be done to promote economic development, control the flow of traffic, manage noise levels, reserve living space for residents, and protect certain resources.

Local government might ban the use of residential property for business purposes to keep commercial activity confined to specific parts of town. Such zoning can lead to conflicts if residents dispute the designated usage.

Zoning laws can also regulate the details of construction in specific neighborhoods. For example, zoning can limit the maximum height of buildings in a given area regardless of the type of construction allowed. High-rise residences or offices could be banned on particular parcels through zoning regardless of whether the buildings otherwise comply with the laws.

The presence of zoning restrictions can influence prices when purchasing a piece of property. Real estate might sell at a premium based on how many limits were put in place by the municipality.