The Oxford City Council passed the ordinance this week after the retail giant Target announced it would allow transgender employees and customers to use the rest rooms they feel comfortable with.
In the ordinance, the Council says people in public restrooms 'do not reasonably expect to be exposed to individuals of the opposite sex while utilizing those facilities."
"The Council further asserts that single sex public facilities are places of increased vulnerability and present the potential for crimes against individuals utilizing those facilities which may include, but not limited to, voyeurism, exhibitionism, molestation and assault and battery," the ordinance states.
The law includes some exceptions, such as for adults accompanying children under the age of 12.
Those violating the ordinance could face six months in jail or a $500 fine.
Oxford Police Chief Bill Partridge did not return CNN's call for comment. But he told the law would be enforced just like any other for a misdemeanor law: A person would have to call police to complain, and when police arrive the officer would have to witness the crime.
After that, Patridge said, the person who called in the complaint would have to sign a warrant.
Oxford's new law comes amid a spate of bathroom policies affecting transgender people across the country. But the ordinance does not explicitly mention the term "transgender."