THE cafe at the former Halfway House pub can stay put after the district council withdrew its bid to take enforcement action.
A planning appeal over the use of the building in Box has also been dropped.
The Novalis Trust, which runs the Cotswold Chine School cafe at the former pub next door, insists it has not breached any planning regulations.
Trust chief executive Jake Lukas said: "The development of the premises from a public house to a cafe has, at all relevant times, constituted a permitted development of the premises."
The Novalis Trust was challenging the enforcement notice issued by Stroud District Council in the High Court. The council withdrew its action before the case was heard.