The compatibility of on-site consumption alcohol outlets as land use is predicted by the acceptance level of the utility or disutility they enjoy amongst residents in a neighbourhood. The density of alcohol outlets is argued in literature as correlating to the significant positive rate of amenity effects that include property crime, alcohol related arrests, drunk-driving, fatal and severe alcohol-induced accidents, violence and assault amongst many others. The problems associated with on-site consumption alcohol outlets have been insistently brought to the attention of the Umjindi Local Municipality in the Ehlanzeni District area in Mpumalanga Province by the residents of the Emjindini neighbourhood. The study is based on the hypothesis that the high density of on-site consumption alcohol outlets contributes to the incompatibility of such outlets with residential areas. In addressing the research sub-questions and validating the research hypothesis, the study adopted various methods (including land use surveys, interviews, administration of questionnaires, literature review and document review) for the collection, analysis, interpretation and discussion of data. The study reveals that the higher density of alcohol consumption outlets is significant in areas of low socioeconomic status. The Emjindini Townships are located with the density of 1 on-site consumption alcohol outlet per 263 people. Liquor legislation in South Africa leaves a lot to be desired in its guidelines for alcohol outlet density, public participation, location radius and local authority involvement. In addition, our findings showed that the significantly unacceptable level of impact thereof is experienced especially in the night, in areas characterised by the high density of on-site consumption alcohol outlets. The on-site consumption alcohol outlets are seen as compatible land uses in residential areas for the reason that, the unacceptable level of impact is insignificant during the day. The adoption of preferred and practical guidelines related to the locality and density of on-site consumption alcohol outlets, compatibility performance standards and public participation are recommended for policy and practice. The amendment to the liquor law is subsequently proposed in this study. / M.U.R.D.P. University of KwaZulu-Natal, Durban 2014.