This paper examines the impact that demographics have on policy outcomes. The impact that aldermanic ward‐level demographics have on the number of liquor licenses is measured in two US cities. In one city there is a great deal of direct resident involvement in the issuance process, while in the other city, issuance decisions are handled by elected representatives. This research does find that demographics have a significant impact on policy outcomes. However, the paper does not find a significant difference in outcomes between decisions made by elected representatives and those made by the community.