diff --git a/feely_pona.cpp b/feely_pona.cpp
index 2f76fa2..b27c792 100644
--- a/feely_pona.cpp
+++ b/feely_pona.cpp
@@ -1375,10 +1375,29 @@ void FP_Update(TELY_Platform *platform, FP_Game *game, TELY_PlatformInput *input
             if (entity->flags & FP_GameEntityFlag_CameraTracking)
                 game->camera.world_pos = FP_Game_CalcEntityWorldPos(game, entity->handle) - Dqn_V2_InitV2I(platform->core.window_size) * .5f;
 
+            game->build_mode_can_place_building = false;
             if (game->build_mode) {
-                if (TELY_Platform_InputScanCodeIsPressed(input, TELY_PlatformInputScanCode_E)) {
-                    Dqn_Rect dest_rect   = FP_Game_GetBuildingPlacementRectForEntity(game, entity->handle);
-                    Dqn_V2 placement_pos = Dqn_Rect_Center(dest_rect);
+
+                Dqn_Rect dest_rect   = FP_Game_GetBuildingPlacementRectForEntity(game, entity->handle);
+                Dqn_V2 placement_pos = Dqn_Rect_Center(dest_rect);
+
+                for (FP_GameEntityIterator zone_it = {};
+                     !game->build_mode_can_place_building && FP_Game_DFSPostOrderWalkEntityTree(game, &zone_it, game->root_entity);
+                    ) {
+                    FP_GameEntity *zone = zone_it.entity;
+                    if ((zone->flags & FP_GameEntityFlag_BuildZone) == 0)
+                        continue;
+
+                    Dqn_Rect zone_hit_box = FP_Game_CalcEntityWorldHitBox(game, zone->handle);
+                    zone_hit_box.pos     += dest_rect.size * .5f;
+                    zone_hit_box.size    -= dest_rect.size;
+                    zone_hit_box.size     = Dqn_V2_Max(zone_hit_box.size, Dqn_V2_Zero);
+
+                    game->build_mode_can_place_building = Dqn_Rect_ContainsPoint(zone_hit_box, placement_pos);
+                }
+
+                if (game->build_mode_can_place_building &&
+                    TELY_Platform_InputScanCodeIsPressed(input, TELY_PlatformInputScanCode_E)) {
                     FP_Entity_CreateClubTerry(game, placement_pos, "Club Terry");
                 }
             }
@@ -1767,6 +1786,10 @@ void FP_Render(FP_Game *game, TELY_Platform *platform, TELY_Renderer *renderer)
             FP_EntityRenderData club_terry_render_data = FP_Entity_GetRenderData(game, FP_EntityType_ClubTerry, FP_EntityClubTerryState_Idle, entity->direction);
             Dqn_Rect dest_rect                         = FP_Game_GetBuildingPlacementRectForEntity(game, entity->handle);
 
+            Dqn_V4 colour = game->build_mode_can_place_building ?
+                            TELY_Colour_V4Alpha(TELY_COLOUR_WHITE_V4, 0.5f) :
+                            TELY_Colour_V4Alpha(TELY_COLOUR_RED_V4, 0.5f);
+
             TELY_Render_RectColourV4(renderer, dest_rect, TELY_RenderShapeMode_Fill, TELY_Colour_V4Alpha(TELY_COLOUR_BLUE_CADET_V4, 0.5f));
             TELY_Render_TextureColourV4(renderer,
                                         club_terry_render_data.sheet->tex_handle,
@@ -1774,7 +1797,7 @@ void FP_Render(FP_Game *game, TELY_Platform *platform, TELY_Renderer *renderer)
                                         dest_rect,
                                         Dqn_V2_Zero /*rotate origin*/,
                                         0.f /*rotation*/,
-                                        TELY_Colour_V4Alpha(TELY_COLOUR_WHITE_V4, 0.5f));
+                                        colour);
         }
 
         // NOTE: Render hot/active entity ==========================================================
diff --git a/feely_pona_game.h b/feely_pona_game.h
index 13b42c7..50b1402 100644
--- a/feely_pona_game.h
+++ b/feely_pona_game.h
@@ -256,7 +256,8 @@ struct FP_Game
     uint64_t                              clock_ms;
     Dqn_PCG32                             rng;
 
-    bool                                 build_mode;
+    bool                                  build_mode;
+    bool                                  build_mode_can_place_building;
 };
 
 struct FP_GameAStarNode
diff --git a/project.rdbg b/project.rdbg
index 33e9f5e..2f87f4b 100644
Binary files a/project.rdbg and b/project.rdbg differ