Former Myanmar President U Thein Sein announced a surprise end to the state of emergency imposed in Rakhine state hours before leaving his office.
The region had been in the grip of sectarian riots between the Buddhist and the Muslim communities in 2012.
The decision to lift the provision was announced yesterday, reports the Myanmar Times.
Aung San Suu Kyi's National League for Democracy (NLD), which does not hold a majority in Rakhine state, has been engaged in a heated spat with the Arakan National Party (ANP) over the formation of the state cabinet.
Former president had said that he decided to lift the emergency order as the state government had determined that no threats to the lives and property of the people were found.
Rakhine State, which is the poorest in the country, has witnessed deadly communal violence wracked in 2012, which led to the segregation of Rakhine Buddhists and Rohingya Muslim, officially referred to as Bengalis, are regarded as immigrants from neighbouring Bangladesh.
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Meanwhile, political analyst says that the move does not mean that the NLD or the military bloc would not try to re-impose it.
However, how the impact of removing the state of emergency in Rakhine on a practical level remains unclear.