After the referendum, state officials said they could not process applications for alcoholic beverage permits from businesses in unincorporated areas of Knox County due to a provision in Tennessee law prohibiting sales of liquor by the drink in any county district of which sections had been annexed by a city, a provision that was interpreted to apply to all of unincorporated Knox County. Special legislation, applying only to Knox County, was enacted by the Tennessee General Assembly in 2009 to amend state statutes to allow liquor-by-the-drink sales throughout the county.
Following the referendum, state officials in Knox County were unable to process applications for alcohol permits from businesses outside city limits due to a law prohibiting liquor sales by the drink within any county district annexed by a city. This law was interpreted to apply to all of unincorporated Knox County. In 2009, Tennessee passed special legislation specifically for Knox County to allow liquor-by-the-drink sales throughout the county.