Tennessee Code Annotated, §§ 57-2-103 and 57-3-202 permit the legal manufacture of intoxicating liquors, intoxicating drinks (including high-alcohol content beer), or both, in the following jurisdictions:

• A city or county that has approved both retail package sales and consumption of alcoholic beverages on the premises through a referendum;
• A city or county with a premier tourist resort district in which it is lawful to sell alcoholic beverages for on premises consumption;
• A city with a population of less than 1,000 that is located in a county in which any jurisdiction within the county has approved retail package sales through referendum and any jurisdiction within the county has approved consumption of alcoholic beverages on the premises through referendum; or
• A city with a population of less than 1,000 that is located in a county that is included in a Tennessee River Resort District and has approved retail package sales through referendum.

Pursuant to the law, distilleries and the manufacture of alcoholic beverages became lawful in August 2013. However, a city that wishes to continue to prohibit the manufacture of alcohol can do so via a resolution which removes application of this law. Such a resolution must be passed before any person files an official notice with the city of their intent to pursue all lawful avenues to manufacture alcohol within the city limits.