Such a measure, if passed, would have to be equally applied to all businesses. The council was also warned by the state attorney general's office that they might be sued if they enacted restrictive zoning ordinances.
Now, the city's last resort is to deny the club a liquor license because of its location near youth facilities. The Oregon Liquor Control Commission now has given officials until Dec. 2 to make a recommendation on the club's liquor license application.
Should that fail, protesters say they will hold rallies.
One Portland musician who was drawn to Oregon for its tolerant attitudes said, "partly, I sympathize" with those who are unwilling to deal with the "unsavory elements" that come with liberal laws.
"I don't go to strip clubs," Ellery Harvey, 23, told ABCNews.com. "I've never enjoyed the atmosphere because I find it somewhat degrading. But, on the other hand, I refuse to try and stop someone from drinking at one, working at one, or opening one."
Tualatin residents are finding that the culture of free speech has a strong tradition in Oregon. Just this year a proposition to amend the constitution failed because of lack of funding raising and petition signers. State legislators say they are not eager to go to battle again.
"Out here they are very liberal," said Sean Laurent, a graduate student in psychology at the University of Oregon who was raised in another bastion of liberalism -- Massachusetts.
"This is a place even more liberal, with a sort of radical liberalism that is very intense and strong," Laurent told ABCNews.com. "People think, 'Hey, I'm not harming another person and you shouldn't dictate what I do or say.' People take their personal freedoms seriously out here."