Home-based businesses provide an opportunity for residents to develop a business or idea(s) from the comfort of their home. Home-based businesses can contribute to home affordability, potentially supplementing incomes and improving livability . In some households, the home-based business is the main source of income while in others, it provides a secondary, but necessary income. These opportunities contribute to building a stronger and more inclusive community with varied employment opportunities.

The District’s Zoning Bylaw currently refers to home-based business as a residential business, defining it as “an occupation or profession carried on as a business, which is carried on by the resident of a dwelling unit; and such business is clearly incidental to the use of a dwelling unit for residential purposes.”

Home-based businesses can have some impact on neighbourhoods if impacts aren’t well managed. These impacts can include noise, parking, traffic, and changes to the residential character of a neighbourhood. You’ll find more information on proposed regulations below.

The District of Oak Bay's current home-based business regulations include:

Residential businesses are currently not permitted in mixed-use buildings and commercial areas. Find more information in Zoning bylaw section 4.2.8.

The District is presenting updates to our home-based businesses regulations. We heard from residents about interest in home-based businesses, and these updates build off past public engagement (OCP Update 2025) and recommendations. Below, you’ll find information on how we’re proposing increased opportunities while introducing regulations to minimize impact.

The first main proposal is a tiered system, with three types of home businesses. Examples of these tiers include:

• Type 1: Home office, or similar, with no potential impacts.
• Type 2: Personal service with low potential impact (ex. Hairdresser)
• Type 3: Potential high impact (ex. Fitness class)

The three tiers are based on factors such as lot size, number of non-resident employees, customers on-site, and more, outlined in the table to the right.

The proposed changes recognize two special types of home-based businesses, childcare and urban agriculture. These businesses are different from the other types due to the outdoor nature of related activities (ex. outdoor play for childcare).

The updates being proposed anticipate impacts and intend to adjust regulations to mitigate and manage home-based businesses and activities. Proposed regulations include measures related to:

• Display and sale of goods
• Signs
• Parking
• Noise, odors and vibrations
• Excessive traffic

There are also activities and businesses considered unacceptable and prohibited. These include: automotive repairs, operating a commercial workshop, restaurant or retail store, among others.

You can find more information on what is being proposed in the technical memo presented to Council on April 20, 2026.

We want to hear from you about these proposed changes. Please review the resources on this page and take part in our online and in-person engagement this month.

The final phase for updating home-based businesses includes this engagement, followed by Council consideration of bylaw updates expected in July 2026.