Riverside opens first two marijuana dispensaries after decade-long ban

Two Dispensaries Begin Operations

Riverside's first two licensed marijuana dispensaries opened their doors to customers on Monday, July 27, 2026. Both locations began serving adult-use customers after receiving final approvals from the city's Department of Community and Economic Development. The stores represent the initial wave of retail cannabis operations permitted under the city's revised ordinance, which lifted the longstanding prohibition earlier this year.

The city had maintained a complete ban on storefront dispensaries since California voters passed Proposition 64 in November 2016. Riverside permitted delivery-only services during that period but prohibited brick-and-mortar retail.

Policy Reversal After Years of Resistance

Riverside's City Council voted to allow up to 12 dispensary licenses in March 2026, reversing its decade-long opposition to retail cannabis. Council members cited revenue projections and public demand as primary factors in the policy shift. The ordinance established a merit-based application process and geographic buffer zones around schools, parks, and residential areas.

Riverside had been one of the largest California cities without legal dispensaries, despite sitting in a county where unincorporated areas allowed retail cannabis operations. The city joins neighboring municipalities including Corona and Moreno Valley in permitting adult-use storefronts.

Licensing Timeline and Remaining Permits

The city issued its first two retail licenses in June 2026, with 10 additional permits available under the current ordinance cap. According to municipal records, 47 applicants submitted proposals during the initial application window that closed in May. The city's scoring rubric weighted local ownership, community benefits packages, and site suitability.

All dispensaries must operate at least 1,000 feet from schools and 600 feet from youth centers. The two approved locations met those distance requirements and received conditional use permits from the Planning Commission in early June.

Revenue Expectations and Tax Structure

Riverside imposes a 6% gross-receipts tax on cannabis retail sales, projected to generate $3.2 million annually once all 12 dispensaries are operational. That estimate assumes average monthly sales of $350,000 per location, based on revenue data from comparable Inland Empire markets. The city's Finance Department will track actual collections quarterly.

The tax revenue is unrestricted. It flows into the general fund. City staff presentations to the Council projected the funds would offset public-safety costs associated with cannabis regulation, including code enforcement and police training.

What Comes Next

Riverside will accept applications for the remaining 10 dispensary licenses in a second round opening August 15, 2026. The city hasn't indicated whether it'll raise the 12-license cap in future years. For full background on this story, see the CannIntel topic hub on Riverside California Dispensaries.

One question remains: whether the city expands its ordinance to permit on-site consumption lounges, a proposal that drew public comment during the March Council hearings but was tabled for future consideration.