Castletown Commissioners have agreed the proposed introduction of permanent speed bumps in the town cannot go ahead.
It follows concerns future rally events would have to be cancelled, causing a significant financial loss.
Other measures previously suggested have been discounted because of its impact on motorsport.
Colin Leather, who sits on the board, says the rally is of great value to the region:
Colby Glen path shut until next April
If you Trick Or Treat, don't trouble the street!
German newspaper says hello from the Island - and Queen Victoria
Don't buy electric cars, says Manx salvage firm
Aurora-watchers could be in for Friday treat!
Peel's pulsing UFO has people perplexed
Peel MHK raises future of former care home
Netflix film about Patrick's greatest boxer out in November