The council voted to rescind the emergency moratorium, which put a freeze on registering any new watercrafts.
Instead, council members are going to write a new draft and go over it with beach vendors at the first meeting in July.
Panama City Beach Mayor Lee Sullivan put the moratorium in place about 10 days ago, saying he was concerned about the "density" on the beach and wanted to ensure safety, but after listening to several other opinions, he agreed to take another look, this time with beach vendors' input.
Jeff Jones, owner of Aquatic Adventures, said, "I think it's great; I'm glad the city council saw there wasn't an immediate need to jump in to stop us doing business on the beach and get through the season."
The city is getting closer to imposing a storm water fee to help pay for solving flash flooding problems. Right now it calls for assessments of about $12 for undeveloped land parcels, and about $37 for the average single family home.