The adult entertainment industry and its outlet and distribution through sexually oriented businesses (SOBs) have moved into the mainstream of American popular culture during the last 20 years. Despite some regulatory guidelines from the Supreme Court, SOB owners, neighborhoods, business groups, and municipalities are engaged in an almost continuous battle over where such establishments should be allowed to locate. This study begins with an analysis of the legal and social context within which the SOB industry has emerged and then focuses on a case study of SOB location in Dallas, Texas. The case study examines the recent growth of SOBs in Dallas, Texas, the evolution of zoning strategies to regulate the industry, and the relationship between SOBs and the incidence of crime. The results suggest that current zoning strategies have not been successful at controlling SOB location in the past for two major reasons. First, the ability of SOB owners to either challenge successfully the existing law or to find loopholes in the law has limited the effectiveness of current regulations and, second, the constitutionally protected nature of some forms of adult entertainment makes locationally based strategies for their control marginal at best. In addition, the study finds that the covariation of arrest rates and SOB location is weak generally, although the incidence of prostitution and indecent exposure tend to be higher in areas where SOBs are concentrated. © 1999 John Wiley & Sons, Inc.