A Whitehorse taxi driver will once again be able to operate his business under the condition he not accept any unaccompanied female fares.

In late June, Mohamed Abdullahi of Golden Taxi was charged with sexual assault after a young female passenger was allegedly forced to touch a man's penis.

He was subsequently prohibited from working as a taxi driver until his October court date.

On July 14, a judge ordered an amendment to the original conditions put on Abdullahi.

The amendment enabled him to accept all fares except for unaccompanied females.

When he was arrested at the Erik Nielsen Whitehorse International Airport on July 22 for transporting a lone woman in his vehicle, Abdullahi was again barred from operating his taxi.

Today, territorial court Judge John Faulkner ordered that the total prohibition be lifted, which will enable Abdullahi to earn a regular income to pay for legal fees.

Andre Roothman, Abdullahi's lawyer, said Abdullahi did have a woman in his vehicle when Whitehorse RCMP arrested him on July 22, but the meter was not turned on and she was only waiting for another taxi to arrive.

Abdullahi was the first in a line of taxis at the airport when the woman approached him, court heard.

He inquired if she was alone and she said she was, so Abdullahi told her he would arrange for another driver to pick her up.

Not wanting his company to lose the customer, Abdullahi called his brother, also a cab driver with Golden Taxi.

Abdullahi drove the woman forward about 15 metres so his brother, parked at the back of the queue, could pull up behind him.

It was then that police, who were monitoring him from a nearby parking lot, drove over to his vehicle and arrested him.

Roothman said he interviewed the woman and she confirmed Abdullahi's story.

He was also able to produce phone records that demonstrated Abdullahi had called his brother just before he was arrested.

Roothman said the police officers were "overzealous" in the arrest, and did so without any further inquiries.

"From the notes I received, he did not get much information from the lady except for her name and her number," said Roothman.

The lawyer said that with his client not earning an income, the past three weeks have be difficult for his client, adding that Abdullahi has family members overseas who he sends money to.

"He is not impressed with the way he's been dealt with," said Roothman.

"My view is it's not proper to put somebody out of a job (until his court hearing)."

Roothman said Abdullahi feels he is being discriminated against because he is black and Muslim.

"He's of the view that does not spell anything good for him in terms of treatment," said Roothman.