The Public Services Ombudsman for Wales said Cynwyd Community Council's failure to provide both was "intransigent".
He looked into the matter after resident Karen Roden complained the policy prevented people from being involved in local democracy.
The council, in Denbighshire, has now agreed to provide bilingual documents.
At a meeting on Tuesday night, council chairwomen Gwen Wyn said the agenda on the village notice board would be displayed in Welsh and English in future.
She described the row over the policy as a storm in a tea cup and said she hoped everyone could now move forward.
Mrs Roden, who is not a Welsh speaker, said the policy reversal was a "common sense decision".
A community council criticised for refusing to provide residents with documents in English as well as Welsh has backed down over the policy.