San Diego County has withdrawn a citation issued to a couple holding weekly Bible studies at their home.
The city first told David Jones and his wife that a major use permit was required to privately host religious assembly.
Without a permit the couple faced up to $1,000 in fines.
Their attorney argued the requirement was a constitutional rights violation.
The city has since apologized and say permits will not be required.
County officials have assured the couple that steps will be taken to avoid similar situations in the future.