The plan divided the 960 inhabitants of Rasquera, south of Barcelona, after the council approved the plan in March.
The marijuana was to be sold to an association of drug users in Barcelona. In Spain it is legal to grow small amounts for personal or shared use.
The village council proposed leasing a seven hectare plot of land to ABCDA, an association of drug users in Barcelona.
Until now, Rasquera has concentrated on cultivating grapes and olives. But like many councils it has run up debts in the financial crisis.
The village leaders believed that despite the relatively large amounts of marijuana involved, the proposal to supply it to a users' group meant the plan would comply with the country's laws.