(Photo courtesy of Four Peaks Brewing Company)

Four Peaks Brewing Company's Tempe location.

On Tuesday night, Arizona Gov. Doug Ducey signed a bill increasing the production cap for state microbreweries.

Ducey signed the bill while at Four Peaks Brewing Company's Tempe location.

The bill sponsored by Republican Sen. Kelli Ward of Lake Havasu City was intended to strike a compromise between producers and distributors allowing microbreweries to keep up to seven retail locations and brew up to 6.2 million gallons of beer per year. After that, they'll have to give up their restaurants and apply for a producer license.

The proposal was one of the more contentious this session, but the compromise passed through the Senate and House with only a single dissenting vote in each chamber.

Ducey called the bill a common-sense reform to an outdated law.

Updated 4/1/2015 at 9:01 a.m.