Abstract: Zoning that supports urban manufacturing may offer new opportunities to promote sustainability benefits ranging from improved job accessibility to reduced waste and resource use. However, industrial uses in urban areas face displacement from competing and conflicting uses. While the process of industrial gentrification is well documented, little work has examined how planning strategies and regulations affect urban manufacturing and its potential contribution to sustainable economic development. Drawing on a review of planning documents and interviews with food and beverage manufacturers, we examine how planning regulates the sustainability potential of manufacturing enterprises in Melbourne, Australia. In doing so, we contribute a deeper understanding of the ways that zoning affects urban manufacturing and the obstacles, tensions, and trade-offs urban planners face in creating a more sustainable local manufacturing base.