PHOENIX—A Scottsdale, Ariz., bar owner and a transgendered woman have agreed to a settlement in a yearlong battle over use of the saloon’s bathrooms.

Tom Anderson, owner of Anderson’s Fifth Estate, had barred Michele de LaFreniere and some of her friends from his bar after complaints from women about men in dresses using toilets in women’s restrooms.

LaFreniere filed a sex discrimination complaint with the Arizona Attorney General’s Office, which began an investigation.

Anderson said Nov. 13 that he had met with LaFreniere over the weekend and agreed to a deal that would allow her to patronize his bar in exchange for her dropping the complaint.

Anderson said he had set up a single-stall bathroom for use by anyone.

LaFreniere said she had gone to the bar Nov. 10, after the deal was struck.

“It was like coming home,” she said.