Many conventional zoning codes include restrictive lists of allowed and permitted uses that are exclusive to separate districts. This limits the mixing of activities and restricts flexible use such as live-work units. In addition, because uses are constantly changing, the lists are soon out of date. Where infrastructure and context support mixed-use, regulations should be relaxed to enable it. Although it requires additional capacity for review and enforcement, performance-based regulations that manage the impacts of adjacent uses without prescribing specific uses, should be considered.

Traditional and successful downtowns and village centers are completely mixed-use, with people living above stores, service and retail establishments all in compact configurations. Yet most zoning regulations do not enable or allow that kind of mixing of activities. In terms of form, inflexible and excessive off-street parking requirements for each use as well as setback regulations make compact infill development difficult. In terms of uses, many codes prohibit putting more than one use in a building. By relaxing some of these restrictions and expanding the lists of permitted uses, compact mixed-use development can happen.