Oak Piece owner Charles Ellis appealed to the planning inspectorate and, after a rigorous review, they found in his favour.
The decision arrived on 24 December and was, according to Ellis, the perfect Christmas present.
He said: "In the end common sense has prevailed. (The original decision) was unenforceable really; how they could tell what I had grown on site entirely I don't know. It means I can buy in liners now and sell them within the law."
The council had raised concerns about parking, loading and turning, saying the addition of a car park would detract from the Cotswold Area of Outstanding Natural Beauty.
But the council's failure to reach a decision within the required time limit meant it was unable to block the proposal.
The inspectorate said the application could go ahead, providing the nursery did not start to sell bought-in produce until enough space for parking, loading and unloading had been allocated to accommodate an increase in traffic.
They added the removal of the condition would not allow for unrestricted retail sales as the nursery would need to obtain additional permission to do that.
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