The Mancos board of trustees voted 5-1 to extend a moratorium on new marijuana businesses until the end of the year.
The town said they needed time to insure their regulations are in line with state laws and rules.
"We are working on it and want to make sure we do it right," said Mayor Rachael Simbeck.
The previous moratorium ended June 30. But town manager Andrea Phillips said the additional months were needed to review the regulations, have changes be vetted by the planning and zoning board, and allow time for 30-day public notices.
Trustee Queenie Barz said the town has had a lot of inquiries from Front Range marijuana businesses interested in Mancos.
"Property is much more affordable here than in Denver," she said. Appropriate regulations will avoid a situation where "there are 50 huge warehouses here growing marijuana."
The decision was a disappointment for Alice Outwater, who has plans to open a wholesale, marijuana business in Mancos that extracts oil beneficial for medical purposes.
She has purchased property for the business on Frontage Road in an area she believes a marijuana business would be allowed.
"Our intention is a marijuana kitchen and cultivation on the lot. It will not be a retail store," she said. "The first step in the licensing process is approval from the town."
The town said they need time to research marijuana oil extraction and infused products.
Trustee Will Stone voted against extending the moratorium, and felt the regulatory process was taking too long.
There are currently two retail marijuana stores in Mancos: The Shop, at 449 Railroad Ave.; and The Bud Farm, at 385 N. Willow St.