A broadcast two-way radio communication system has a plurality of transmit/receive stations which function as repeaters. Each of the stations has a corresponding geographically defined operation zone. A mobile radio transmits a request for use of a communication channel. Along with this request, the mobile radio provides its geographic location, which is derived from equipment located in conjunction with the mobile radio. Upon receipt of the channel request and geographic location for a mobile radio, the control computer system determines the requesting mobile radio is a member of a zone restricted user group. If so, the mobile radio is allocated a channel, if available, in the restricted zone of the mobile radio. Should no channel be available at the restricted zone, the system attempts to allocate a channel from a station which has radio propagation overlap that extends into the restricted zone. If, however, the mobile radio is located outside the zone of the requesting mobile radio, the request is ignored. By allocating channels to restricted mobile radios only in the restricted or adjacent zones there are fewer channels allocated for the request, thereby eliminating excess channel allocations and utilization of interconnecting network trunks.