Residents in Rockcliffe Avenue, Whitley Bay, North Tyneside, spent thousands of pounds on sprucing up the pedestrianised street in front of their terrace, making it into a haven for wildlife.
But North Tyneside Council said the hundreds of blooms may have to be removed amid fears they could cause a hazard - despite the same local authority presenting residents with an "In Bloom" award last year.
Resident Mike Kelley raised a petition against the threat and the story was picked up nationally and internationally.
The council has now backtracked,and the residents of Rockcliffe Avenue have once again won a North Tyneside In Bloom award for their displays.
Mr Kelley, a former Royal Marine who runs a CV writing business, said: "It was definitely worth the battle. Everyone in the street is over the moon. The big black cloud has lifted and everyone is happy again."
A council spokeswoman said: "In recognition that the colourful pots were well established the council agreed that the current pots would not be removed while a new scheme was confirmed to meet the highway access requirements.
"All residents of Rockcliffe Avenue will be asked to opt in or opt out of a planting scheme."