Taane, who moved to Papamoa in January, was arrested early on April 10 for performing a song by rap group NWA that is derogatory to police at the same time police walked through his gig at Tauranga club Illuminati.
Taane said it was not his intention to rile police officers during the R18 gig, but he was charged with acting in a disorderly manner likely to incite violence.
He pleaded not guilty.
Tauranga Police Inspector Karl Wright-St Clair said mediation had resulted the charge against Taane being dropped.
Mr Wright-St Clair said police proposed the meeting with Taane to see if the matter could be resolved by way of mediation, similar to the restorative justice process.
"The parties involved were able to openly express their views on how the events had unfolded and what they were thinking at the time. As a result of the meeting, the police involved and Mr Taane now have a better understanding of how this event impacted on each other,'' Mr Wright-St Clair said.
The parties agreed Taane's arrest resulted from a misunderstanding.
Police respected the right of Taane to express himself as an entertainer.
"At the time the police believed the lyrics sung by Mr Taane could inflame the situation after security removed a patron from the nightclub. After the mediation meeting the police are now clear that this was not his intention,'' Mr Wright-St Clair said.
At the meeting Taane reiterated his belief that the police did a fantastic job and often had to work in very difficult situations.
Taane did not return calls from the Bay of Plenty Times.
