Taxpayers will foot the majority of the bill for an aborted legal case sparked by the Queensland government's bid to sack the Ipswich City Council.
The embattled council, which is under a corruption cloud, had challenged the government's show-cause notice.
The case became a legal stoush over costs after Local Government Minister Stirling Hinchliffe changed tack and opted for a special law to sack councillors.
Veteran councillor Paul Tully said it was a tremendous win for the council and the government would have to pay about hundreds of thousands of dollars.
"They'll have to pay about $100,000 of Ipswich's cost plus their own, so the government is probably out of pocket by $200,000," Mr Tully told reporters outside the Queensland Supreme Court on Tuesday.
"This is a real F for fail for the minister."
Mr Tully said it was a big win for the ratepayers of Ipswich but not the taxpayers of Queensland.
AAP is seeking comment from Mr Hinchliffe.