Cities and towns in New Hampshire will soon get to decide if they want to allow public drinking in designated "social districts" thanks to a new law. 

Gov. Kelly Ayotte recently signed off on the legislation. The new law takes effect on Sept. 5.

"Our state is the best in the nation for economic opportunity because we respect local decision making and give businesses the freedom to grow," Ayotte said in a statement to the Union Leader. "It's common sense that we would give our cities and towns this opportunity to grow their revenue and strengthen local tourism."

What is a social district?

The law defines a social district as "a defined outdoor area in which a person may consume alcoholic beverages sold by a licensee."

The area must be clearly marked with signs telling people where and when they can drink. People can only drink alcohol that they bought from a business or vendor inside the social district.

Alcoholic beverages sold for consumption within the social district must be in non-glass cups that say "Drink Responsibly -- Be 21,' the legislation states.

Social districts in New Hampshire

Illinois, Michigan and Minnesota are some of the other states that allow communities to form social districts for public drinking.

Cities and towns that want to create social districts have to hold a public hearing first, and then put it to a vote via ballot question.

One Republican lawmaker who backed the bill calls it "true conservative reform" that can help boost downtown economies.

 "It puts power back in the hands of Granite Staters, supports small businesses, and safeguards public safety — all without raising taxes or imposing one-size-fits-all mandates," State Rep. Bill Boyd, of Merrimack, said in a statement.