Douglas Robertson has held hundreds of free underground gigs in his Edinburgh apartment, each with up to 50 revellers attending.
However, officials at Edinburgh City Council pulled the plug on his Sound House venture last year because of claims the noise levels were disturbing neighbours and it breached the flat's residential status.
Mr Douglas, 59, a photographer, applied for a Certificate of Lawfulness to allow him to keep holding the music nights but it was refused by the local authority.
He appealed to Scottish ministers after he was served with an enforcement notice. They have now told him the gigs can continue as long as they are not held frequently, and the noise does not disturb neighbours.