Bwlchgwyn's lofty claim has had cold water poured over it by data from mapping agency Ordnance Survey.
It showed Trefil in Blaenau Gwent is the highest with an elevation of 1,341ft (409m).
Local councillor Alyson Tippings said she had always known Trefil was one of the highest villages, but it "would be nice" to now have a sign of its own.
Garn yr Erw, Torfaen, at 1,292ft (394m) is second with Bwlchgwyn, 1,167ft (356m), a respectable, but not sign-worthy, third.
Ms Tippings said: "It's not really well-known that it's the highest, we have got the highest rugby pitch and thought it was high up, but we didn't know if technically it would be the highest, or how big a village has to be, but it's not surprising.
"In winter, we are usually the first to have snow and we're the last to see it go away. People will call and say 'is there any snow yet? Can I bring my kids?'
"Growing up in the village there was always snow around Christmas, snowmen and sleighing. That fact is a good indicator of height.
"We're lucky that the rain washes away quite quickly too, there are benefits."
She said now Trefil is officially the highest village in Wales, "it would be really nice to have a sign".
Jayson Barry, who lives near Trefil, said it was not surprising it was the highest because of differences in temperature.
"I live a few miles away and you do notice the temperature differences just in a few miles, it always feels a few degrees colder here, if it is or not I don't know.
"It's been quite mild this winter so it feels more Christmassy up here.
"I wasn't aware it was the highest, I don't think much has been made of that but if it's official that could make people want to visit."
Evelyn Seville, who has lived Bwlchgwyn all her life, told BBC Radio Cymru's Post Cyntaf she had always considered it to be the highest village in Wales and was disappointed.
A village near Wrexham which has a sign boasting it is Wales' highest is not - it is not even the second highest.