Local government jurisdictions (counties & municipalities) in Tennessee by default are dry and do not allow the sales of liquor or wine.
These governments must amend the laws to allow for liquor-by-the-drink sales and retail package stores.
The state's four largest cities, Memphis (Shelby), Nashville (Davidson), Knoxville (Knox), and Chattanooga (Hamilton), are located in "wet counties".
[12] In 2009, the Tennessee General Assembly amended the statute that had for many years limited the distillation of drinkable spirits to just three counties (Lincoln, Moore, and Coffee).
This change was expected to lead to the establishment of small distilleries, thus increasing the number of producers of Tennessee whiskey.