This article investigates the reasons for the adoption and rejection of liquor dispensaries in the years prior to the adoption of national prohibition in the United States. Southern municipalities were the primary dispensary locations, largely due to the permissiveness of local option laws in the South. Municipalities with dispensaries were often retreating from prohibition and dispensary supporters argued that publically run liquor stores were the next best thing. Beyond the South, states that explored dispensary adoption also were those repealing prohibition laws, suggesting a larger pattern whereby prohibition preceded dispensaries rather than following them.