WATE:

A bill that puts a liquor by the drink vote on the table in Townsend soared through the state legislature Tuesday.

The bill is now waiting on Gov. Bredesen's signature.

If Bredesen signs it, residents of Townsend can vote on the issue in the November election.

In 2005, a similar measure was taken to allow a liquor by the drink vote but the paperwork was not filed on time.

So, why exactly does the state have any say in a city matter?

Update: A reader at my place says:

I don’t know the reasoning or origins, but the state of TN regulates liquor sales and local governments regulate beer (and other low alcohol drinks) sales.

That answers that.