Zoning is the classification of real property (real estate) into categories to regulate its use by a local government or municipality. In the context of the law, real property owners must follow the regulations for how their property is to be used. Zoning often designates certain areas of a town or city for business and certain areas for residences.
One of the main reasons why zoning exists is because it makes organizational sense to designate certain areas of a town for certain purposes. For example, if one section of the town is for business, then many different stores can set up in that region and a lot of shopping can be done there. A business section allows people to shop at a number of different stores without having to drive to each store individually. It also allows different stores to share parking lots for their customers and prevents residential neighborhoods from having to deal with the inconveniences associated with businesses.