S.D. Codified Laws § 9-55-4
A municipality may create a business improvement district only as provided by this chapter. A municipality that has not adopted any zoning ordinance pursuant to § 9-12-13 may create a business improvement district anywhere within the boundaries of the municipality. If a municipality has adopted a zoning ordinance pursuant to § 9-12-13, the municipality may create a business improvement district only within the boundaries of an established business area that is zoned for business, public, or commercial purposes. For purposes of this chapter, an established business area, may include noncontiguous property within the incorporated municipality that has a common zoning designation. Any business improvement district that includes noncontiguous property pursuant to this section may, by resolution of the governing body, add qualifying property to the business improvement district.
SDCL 9-55-4