The City of Iqaluit has refused to issue a business licence to medical marijuana entrepreneur Ed Devries, saying the proposal is beyond its jurisdiction.

"Territorial and federal legislation overrides municipal legislation in this case," said John Hussey, the city's chief administrative officer.

"Based on the fact that it is a controlled substance, we are not comfortable issuing a licence at this time to Mr. Devries and the nature of his business."

Devries wants to open a storefront that would dispense several varieties of high- quality marijuana to people who need it for medical reasons and provide a place to smoke it.

Customers would need to get a doctor to confirm their illness and then swear an oath that they use the marijuana to treat symptoms.

Devries said he understands and accepts the city's decision, but is determined to go forward with his project.

The next step is to get an exemption from the territorial government, he said. He hopes to have a proposal prepared for politicians before the next legislative sitting.

Health Canada is responsible for medical marijuana and gets the final say.

Hussey said even if Devries gets approval from the territorial and federal governments, the city will need to gets its own legal opinion before granting a licence.