Hours after city councils in Toronto and Ottawa voted to allow privately run retail pot shops to open next year, the Ontario government released a statement last night saying it will take a "phased approach" to introducing retail cannabis stores.

It will only issue a handful of licences at first.

Months ago, Premier Doug Ford's P-C government said it wouldn't cap licences.

But last night, it announced only 25 licences will be issued ahead of the first day of private retail sales on April 1st -- and Ontario's Alcohol and Gaming Commission will use a lottery system to determine who is eligible with the results announced in January.

The province claims it was compelled to implement the phased approach due to "severe supply shortages" being experienced by pot outlets nationwide.