With the ever-increasing number of communities adopting zoning, it became evident that there was a need to develop a systematic procedure for formulating an efficient zoning policy. This paper presents a model which leads to an optimal zoning policy, developed so as to achieve Pareto optimality. The model is applied to a hypothetical city with a population of one million. The results of a numerical analysis were used as a basis for formulating a zoning map which ensures efficient resource allocation.