Strategy in Action

Residents of Palm Beach, an island off the coast of Florida, have converted their central commercial district into a “town-serving zone,” which caps its stores at 2,000 sq. ft and incentivizes them to serve local residents. Large businesses can apply for an exception if they can document that more than 50 percent of receipts come from a local zip code. The law was upheld in a 1991 court case, which concluded that the restrictions served legitimate public interests and reflected the town’s desire to limit the displacement of local businesses.