Retrospective planning permission has been given for the redevelopment of The Swan Inn into shops.
Work had already started on turning the Stroud pub's ground floor - unoccupied for four years - into two retail units, with a deli already opening in one of them in September.
Stroud District Council gave the go-ahead for the redevelopment last week, but previously described the work starting before its decision as "unfortunate".
Pub campaigners had called for a halt to the redevelopment last month until the landlord showed more proof the Swan was no longer viable as a pub or any kind of drinking establishment.
However, in a report on the pub released with the planning decision, a council officer argued there was no demand for a continued community use for the premises, citing marketing evidence submitted by the landlord.
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