Why should a small business owner be concerned with city zoning policies? If you open a commercial business in a residential zone you could be closed down regardless of how much you invested on renovations or the fact that you signed a lease. New York City is divided into three basic zoning districts: residential (R), commercial (C) and manufacturing (M). The three basic categories are further subdivided by the intensity of use, whether for retail or manufacturing categories, parking, building bulk or residential density. This fact sheet provides you with the steps to take to make sure that your location is correctly zoned for the type of business you want to open and operate.