Protests have been staged outside the Church of Our Lady at Herryville, in Ballymena, County Antrim, every Saturday night since September 1996.
The move comes days after the people of Northern Ireland voted in favour of the historic Good Friday Agreement, which sets out a new future for the province.
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The demonstrations were a response to nationalist objections to Orange Order parades through Dunloy.
It cost the Royal Ulster Constabulary an estimated £1m to police the protests, which, at their height, resulted in violent clashes between police and demonstrators.
A spokesman for Harryville residents said: "The protests served admirably to focus attention on the Dunloy problem. Our actions had helped to keep the plight of the Orange Brethren in the spotlight."
Nationalist SDLP councillor Declan O'Loan said: "It gives us a great opportunity to rebuild relationships, particularly in the context of the excellent referendum result.
"I think it's a further piece of good news. I think the Catholic parishoners in Ballymena will be delighted with this news, but so will the majority of Protestants."
But the BBC's Adam Smith says the Harryville decision offers no clue as to how Catholics will view loyalist marches this summer.
"Individuals in the Orange Order have had difficulties with what was happening at Harryville. But there is no indication from what has happened there as to what will happen at the various contentious parades over the summer."
Blair's caution
On Monday, UK Prime Minister Tony Blair warned the road to a peaceful future would not be smooth.
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Writing in the Belfast Telegraph newspaper, Mr Blair said Northern Ireland may face "set-backs and disappointment" in the coming months.
Some fringe groups may resort to the violence that has characterised the province for almost 30 years, he said, but the Yes vote in the referendum would make it harder for them to operate.
Commenting on the decision in Ballymena, a nationalist community spokesman said it represented the new spirit running through Northern Ireland.
The decision to halt protests outside the church came after the holding of an Apprentice Boys' parade on the outskirts of the neighbouring north Antrim village of Dunloy earlier this month. The parade passed off without trouble.