Ahwaz Hookah House owner Abbas Bansaid expects the month ahead to be busy at his shop.

It's the first weekend of Ramadan. After a day of fasting, Muslims will gather in his business to talk and smoke.

"Hookah is part of our culture," says Bansaid. "It's been around for 500 years. It's almost really is kind of religious to us."

Bansaid plans on keeping the tradition going, despite a letter from the city warning him to stop.

"Muslims are not allowed, based on their religion, to drink or go to a bar or disco, so this is really the only place for them to social," he says.

In a letter, the city gave Bensaid until August 31st to cease operating as a hookah lounge.

The city says the lounge is violating its new smoking by-law, which came into effect in March.

Lounge owners pleaded with the city before the ban came into effect, but council decided against maintaining an earlier exemption.

Bansaid has a letter from the province saying hookah bars can operate as long as they don't use tobacco. He now uses a herbal blend, but local laws are different.

In a report to Vancouver city council this summer, health officials say "irrespective of what is being burned...the burning of any substance in a hookah pipe is prohibited."

But despite the by-law, you don't have to go far to find another Vancouver business where people are still smoking indoors. At the Amsterdam Caf� on West Hastings Street, the sign outside says no smoking within six metres of the doorway -- but inside people are still lighting up.

Bansaid says there needs to be e quality in the way by-laws are enforced.

"If they have right to do their thing -- more power to them," he says. "But we would like to have the same thing happen for us, too."

Bansaid and another lounge owner have hired a lawyer. They're prepared to take legal action if the city takes further steps to try to shut them down.

With a report from CTV British Columbia's Maria Weisgarber.