Colorado Cities Push Back on Psilocybin Therapy Boom

In a significant development for Colorado's nascent psychedelic therapy industry, Colorado Springs — the state’s second-largest metro area — has enacted a stringent ordinance limiting the placement of psilocybin healing centers within city boundaries. The City Council, in a 6-3 vote last November, approved measures that prohibit these centers from operating within a one-mile radius of schools, daycares, and drug treatment facilities. This regulation goes beyond the parameters set by Proposition 122, which legalized psilocybin in Colorado in 2022.

The ordinance in Colorado Springs has ignited a heated debate among residents, lawmakers, and industry stakeholders. Critics argue that the restrictions effectively amount to a de facto ban on psilocybin healing centers within the city, while the city council maintains that there are at least two locations in Colorado Springs that comply with the ordinance. Councilmember Dave Donelson, a retired military veteran who says he’s spoken to other veterans about their successes with psilocybin treatment, defended the measure, stating it strikes a balance between state-level legalization and local community preferences. He pointed out that El Paso County, which includes Colorado Springs, had initially voted against Proposition 122.

Donelson describes the council’s move as a “slower approach.” “We wanted to see where this treatment could go, but we didn’t want [healing centers] all over the city right out the gate,” he said. “We’re trying to be fair to everyone.”

The situation in Colorado Springs is not isolated. Across Colorado, municipalities are wrestling with how to implement Proposition 122 at the local level. As the state reviews applications and issues licenses (it just issued its first one last week) for psilocybin healing centers, many local governments are considering their own sets of restrictions, or outright bans, on these facilities.

Unlike Colorado’s Amendment 64, the law that legalized adult-use cannabis in the state, Prop. 122 did not include an “opt-out” provision, or a clause that enables individual jurisdictions to ban or deny licenses to healing centers. That was by design, says psilocybin policy director Kevin Matthews, who helped lead the Prop. 122 campaign in 2022 and led a successful psilocybin decriminalization initiative in Denver in 2019.

Before the Prop. 122 campaign kicked off, Matthews and other activists decided to push the legislation in Colorado. Why? Because, back in 2021, Colorado ranked 51st for states with access to mental health services; essentially dead last. (As of 2023, Colorado ranks 45th.)

“If we wanted all Coloradans to have access to this medicine, it did not make sense to us to give local jurisdictions the authority to outright ban the operation of healing centers,” Matthews told DoubleBlind. “Especially when considering individuals who live in rural parts of the state. Most of this state is still rural.” 

Despite the lack of an opt-out amendment, some local jurisdictions have hit pause on the healing centers. For instance, the town of Keystone recently implemented an ordinance that halts the licensing of healing centers until February 2026. The ordinance also requires the town to develop comprehensive local regulations by the end of this year. The Northern Colorado town of Berthoud approved a similar ordinance last year, which expires in May 2026. 

Matthews said he was disappointed that towns such as Keystone have enacted moratoriums but understands why the town’s council made the decision. “It’s also okay for towns or cities to want to wait a little bit,” he said. “They want to see outcomes – hopefully positive outcomes – before they decide how healing centers are going to operate in their town.” 

This patchwork of local regulations creates a complex landscape for the burgeoning psychedelic therapy industry in Colorado. The state finds itself at the forefront of a national movement, being one of only two states, to have an established legal framework for the therapeutic use of psychedelic medicine.

Despite the regulatory challenges, Colorado has witnessed the rapid emergence of an industry centered around psilocybin therapy. This includes the development of guided experiences and the establishment of university training programs for facilitators. These initiatives aim to ensure that the therapeutic use of psilocybin is conducted safely and effectively under professional guidance.

While some areas like Colorado Springs are imposing strict limitations, other regions in Colorado are taking a more open stance. Summit County, for instance, is emerging as a hub for psychedelic-assisted therapy. Towns like Breckenridge, Frisco, and Silverthorne are also exploring ways to integrate these new therapeutic options into their communities.

In Summit County, local officials and healthcare providers are working to create a framework that balances safety concerns with the potential benefits of psychedelic therapy. This approach includes considering zoning regulations, licensing requirements, and public education initiatives to ensure responsible implementation of psilocybin services.

The divergent approaches across Colorado highlight the challenges of implementing a state law that ventures into largely uncharted territory. Local governments are tasked with balancing public safety concerns, community preferences, and the potential therapeutic benefits of psilocybin.

The coming months and years will be crucial in shaping the future of psychedelic-assisted therapy in Colorado. As more healing centers receive licenses and begin operations, local communities can observe their impact firsthand. This real-world experience may lead to further refinements in regulations and potentially influence public opinion on the use of psychedelics in therapeutic settings.

As Colorado treads this pioneering path, it continues to balance the promise of innovative mental health treatments with the need for careful regulation and community consideration. The state's experience will undoubtedly provide valuable insights for policymakers, healthcare professionals, and communities across the United States as the conversation around psychedelic therapy continues to evolve.

💌 If you loved this email, forward it to a psychonaut in your life.

Editorial Process

DoubleBlind is a trusted resource for news, evidence-based education, and reporting on psychedelics. We work with leading medical professionals, scientific researchers, journalists, mycologists, indigenous stewards, and cultural pioneers. Read about our editorial policy and fact-checking process here.