That said, spend some time on Google maps satellite view following dirt roads into the hills and it's amazing what you'll see.
Legalization in Washington State did the opposite. As soon as the ballot initiative passed the government put together the governing legislation that resulted in a three stage operating process whereby growers must sell to packagers who then in turn must sell to retailers.
At each stage of transfer there is a 25% tax on the gross and then there is the final 9.5% retail sales tax, too. Of course, black market producers see none of these financial burdens, so consumers are seeking them out.