Irvington became the first Indianapolis neighborhood approved to allow outdoor drinking in a designated area — just in time for the annual Halloween festival.
Here’s how you can try to add one in your neighborhood.
How do I create a proposal?
The policy applicant, according to City-County-Councilor Andy Nielsen, could be an organization such as a business association, neighborhood group or a nonprofit.
Such groups can create a plan for an adult beverage designation by working with their city-county councilor and local businesses to determine the locations, dates and times when beverages would be allowed in accordance with the city’s zoning ordinance.
They also have the option of designing a sanitation and safety plan.
Once these details are outlined, the city-county councilor can submit the application to the council’s clerk. Applicants can make adjustments to the proposal as needed after receiving a review that includes the city’s legal team, metropolitan development staff, public works department and police department.
Then, the councilor can introduce the proposal for consideration by the City-County Council.
If the council approves the district, city staff will submit the proposal for final approval to the Indiana Alcohol and Tobacco Commission.
Here’s how it works
The designated area allows adults 21 or over to take up to two alcoholic beverages outdoors after leaving a business that sells alcohol, or into nearby participating businesses. The drinking would only be allowed in designated areas during operating hours.
Businesses would be required to maintain outdoor trash cans and serve drinks in non-glass cups.
The city could require businesses opting into the outdoor drinking area to amend their insurance policy to address liability concerns.
The businesses that participate in the district don’t need to be finalized until the city and state both approve the district, according to Nielsen, an eastside Democrat who sponsored the Irvington drinking ordinance.
How many outdoor alcohol areas can Indy have?
Cities and towns can create up to seven outdoor alcohol areas, according to state law. So far, Indy councilors have not announced beverage proposals for other neighborhoods as of Oct. 1, according to city staff.
A separate ordinance passed by city-county councilors outlines the process for creating a drinking designation.
City-county councilors approved a proposal in 2025 to create Indy’s first outdoor alcohol district along portions of East Washington Street, South Audubon Road and Bonna Avenue in Irvington. The city received final approval from the Indiana Alcohol and Tobacco Commission Sept. 3.
The excluded cities and towns in Marion County can also form their own areas independent of Indianapolis.
- Speedway has an outdoor drinking designation.
- Beech Grove voted on the idea in July but failed to garner enough community support.
- Southport and Lawrence have not discussed official proposals for such areas.
What’s the cost for an adult beverage policy?
Each outdoor alcohol district must have signs that identify the boundaries of the area and the participating businesses — places that serve alcohol and places that don’t serve alcohol but allow it in their building.
The applicant must pay for the signs and cups with the district logo, according to the city ordinance.
Nielsen said the city doesn’t have a cost estimate for the amount a neighborhood group would have to pay in order to implement a drinking policy because the number of signs and drink containers for businesses serving alcohol can vary per district. He said Speedway has about four signs and Irvington anticipates having around seven street signs.
Kimberli Hudson, leading the Fletcher Place drinking initiative said she received quotes that were $500 per sign.
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Mirror Indy reporter Elizabeth Gabriel covers the south side of Marion County. Contact her at elizabeth.gabriel@mirrorindy.org. Follow her on X at @_elizabethgabs.
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