Municipal liquor stores have been in operation since the United States government repealed prohibition in 1933, giving individual states the responsibility and authority to regulate liquor sales. At that time, the Minnesota legislature gave cities the option of issuing liquor licenses to private businesses or providing municipal alcohol dispensing services.

Eden Prairie, along with more than 300 other cities, chose to operate municipal liquor stores. This choice not only allows for greater control over liquor being sold and consumed in the City, but also further diversifies the City’s revenue sources.

Historically, the City's three Eden Prairie Liquor locations have generated between $700,000 and $10-million in revenue annually. Profits from liquor operations are transferred to the City’s Capital Improvement Plan (CIP) fund. Some examples of CIP projects include improvements to playground equipment and parking lots at several City parks, as well as trail maintenance throughout the community.