Local residents petitioned against the introduction of the bike bus on the narrow B3217 road between Exbourne and Okehampton because of the potential dangers to other road users.
West Devon Partnership Committee voted this week to re-route the bus to the B3215 which was suggested by county councillor Bill Cann as a more suitable road for this kind of transport.
Petition co-ordinator Terrie Wright, who collected 83 signatures against the route, said she was very happy with the result.
'This is a victory for the people and I thank all those who took the time to sign the petition,' she said. 'It shows that people do matter.
'I have received phone calls about numerous incidents along that road which happen simply because the road is not feasible.'
The specially converted bus which carries passengers and bicycles from Okehampton to Barnstaple, allowing easy access to the county's cycle networks, was re-launched earlier this year.
It has won support from the public and two national awards but usage has been quite low around Okehampton. This is believed to be because the sections of the 'Devon Coast to Coast' cycle route around Okehampton, Meldon and Prewley are the least easy to negotiate by bicycle at the present time. This situation is expected to improve next year.
Cllr Bill Cann told the meeting that the people of Exbourne and the surrounding area would not give the bus any votes.
Out of the 55 buses observed on that road 37 were empty, he said.
'This is an inconvenience to people in business and those in farming who have enough difficulties without experiencing problems on the road during the busiest four months of the year,' he said. ' Vehicles are having to reverse so the bus can get through.
'The county council wants to improve the situation for horse riders, pedestrians and cyclists on the roads but this is not doing that at all. I cannot see how this bus can win any awards when it is causing so much inconvenience to other road users in Exbourne.'
He said the B3215 road was a better road than the 'cart track' the bus was currently travelling on.
Cllr Coleen Herriman said people should be a little more generous in their praise for the bike bus.
As well as providing a service to cyclists and tourists, the bus was also used by locals, she said.
She said the bus linked in with the various other cycling elements around Okehampton into which a large amount of county and European funding had been invested.
Work had been carried out at Okehampton Station and the Meldon Viaduct which was all part of that.
'All these elements make it easier to attract tourists and more cyclists and walkers in the town will mean more money is spent here which is what it is all about,' she added.