In 2016, Michigan legislators allowed for licensing of medical marijuana shops. Each municipality was given the right to decide whether to allow them.

In 2019, Michigan voters allowed for licensing of high-THC recreational marijuana shops. Each municipality was given the right to decide whether to allow them.

In 2020, Petoskey City Council decided to allow three medical marijuana shops. This was done in spite of significant public concerns at City meetings, and in spite of data from a third ward survey, where the majority opposed both medical and recreational marijuana shops (73% opposed), and in spite of data from a pending zoning protest petition, which showed significant concerns by affected residents and businesses. No data was presented for supporting three sites. A lottery was used to pick three applicants. To date, none of the three applicants have completed their applications, or obtained permits.

In 2020, Petoskey City Council provisionally banned recreational shops. 

That same year, 2020, Petoskey voters adopted a stronger ban on recreational marijuana shops, in a successful initiative election under the City Charter. 589 residents signed petitions to get the election. The ban prohibits the allowance of recreational marijuana establishments in the City of Petoskey without first securing approval of the majority of voters in the City of Petoskey. An initiative under the City Charter would be required to try to replace the ban.

In 2022, Petoskey voters elected to keep the strong 2020 ban, by resoundingly rejecting an initiative that was put forward by pro-marijuana business interests. Petoskey’s ban prohibits the allowance of recreational marijuana establishments in the City of Petoskey without first securing approval of the majority of voters in the City of Petoskey. An initiative under the City Charter would be required to try to replace the ban.