On Vancouver's Hastings Street, a gentlemen's agreement with police allows people in that area to smoke pot, so long as no other drug dealing or use takes place.
One bar's motto is, "This is a respectable joint." Many bars even have a "munchies" menu for post pot-smoking eating binges.
It's because of this atmosphere that Vancouver has been nicknamed "Vansterdam."
Vancouver's mayor not only wants to legalize marijuana but wants the governor to grow, sell and tax it to keep it out of the hands of criminals and to raise money for drug treatment programs.
But U.S. drug czar John Walters (search) said the city's lax attitude has turned British Columbia into a drug-smuggling hot spot and noted that marijuana drug seizures have tripled along the northwest border of that province via car, truck, plane, boat and backpack for the past three years.
And Canada is flooding the United States with what Walters calls "B.C. Bud."
Go to the video box at the top of this story to watch a report by Fox News' Trace Gallagher.