City officials in Rancho Cucamonga, Calif. are dropping their challenge to a home Bible study group.
The city had demanded that Shiloh Tabrenacle Church obtain a permit for its weekly meetings, saying the gathering constituted a home church.
About 60 people attend the Friday night meetings at the pastor's house.
The city later withdrew its demand after meeting with the pastor and determining that the meetings were simply a Bible study.
However, Brad Dacus of the Pacific Justice Institute said that it's still wrong for the city to require permits for home churches.
Michael Peffer, head of PJI's Southern California office and attorney for the Bible study group, also expressed concern over the city's actions.
"We are very pleased that the City of Rancho Cucamonga saw the light and dropped their attempts to shut down this Friday night Bible study," he said.
"At the same time, we are concerned that the City appears determined to use the same heavy-handed tactics against house churches," he added. "We urge any church or Bible study group threatened by Rancho Cucamonga or any other local government to contact PJI immediately."
Meanwhile, officials have taken no steps to change the city's policy and have indicated they might attempt to shut down similar meetings.