Residential segregation in the United States has fostered vast inequalities between White and Black Americans, most significantly through government denial of equal access to housing that contributed to inner-city ghetto formation. This project aims to unveil the relationship between court decisions and zoning ordinances that reinforced subterranean residential segregation through analyzing twentieth century legal precedent. In a Georgia Supreme Court case, Smith v. City of Atlanta (1926) racial zoning ordinances were declared unconstitutional, despite the narrow scope of the holding’s application based not on the civil rights and liberties of Black residents, but rather on the specificities of residential and commercial right to and use of property. However, in the landmark Supreme Court case, Village of Euclid v. Ambler Realty Company (1926), single-family home zoning was declared constitutional. I argue the courts’ rulings provided loopholes for Atlanta city council, private developers, and White residents to continue residential segregation after it was deemed unconstitutional under Buchanan v. Warley in 1917, through upholding racially neutral zoning ordinances based on maintaining property values. The history of neighborhood inequity that developed in Atlanta was a result of racist, government-sanctioned policies masked under the right to protect individual property within respective municipalities. The decision in Euclid provided the blueprint for city planners to build residential areas with single-family homes that prohibited Black Americans from being able to purchase and live in such dwellings, since the courts still reinforced restrictive covenants. Ultimately, racial neutrality of the zoning ordinances would prove to be discriminatory towards Black Americans seeking single-family homes in residential areas. The ruling held that local governments embodied the police power to regulate private property, which gave way to Euclidean zoning—a concealed practice of residential segregation. Euclid represents a legal loophole that must be sewn shut.