City of Joondalup councillor Nige Jones says he didn't know Adelaide's Crazy Horse Revue was a strip club when he walked in for a drink in August.
Visiting on a business trip from Perth, he was in an unfamiliar city, and he left the premises as soon as he realised where he was,Â
"It was a genuine mistake," Mr Jones told 6PR Perth this week.
"I had a quick beer in there and left."
Mr Jones issued an apology and told the public the council did not pay his claim.
However, on Wednesday, the City of Joondalup confirmed the besieged councillor - first elected in 2015 - had resigned.
"This decision has been made for personal reasons and I ask that Cr Jones' privacy be respected at this time," mayor Daniel Kingston said.
"It is essential that we continue to support measures that uphold transparency and integrity in local government."
Mr Jones confirmed his resignation in a Facebook post, noting he "went out on the front page".
"It's time for me to stand down as I'm not a fit with the new council coupled with my mistake grabbing a beer in a unsavoury venue," he wrote.
"I'm sorry if I let you down but hope I served you well the other 10 years."
M Jones' error drew criticism from many in the community, including Western Australian Premier Roger Cook, who earlier said the behaviour was unacceptable and the councillor should reconsider his position.
Attention also turned to claims Mr Jones had misrepresented his military record during recent local government elections for the mayor's job.
His candidate profile of the City of Joondalup stated he had: "Proven Integrity through 11 years military service in British Special Air Service Regiment, Royal Military Police, Australian Pilbara Regiment and RAAF."
But David Thomas, President of WA's Australian Special Air Services Association, said it was inaccurate.
Mr Jones attempted to join the British SAS, but wasn't successful and shouldn't say he served with the regiment, Mr Thomas told ABC Radio.
"It's a misrepresentation and falsely implies skills training and service that many of our qualified service members have sacrificed to earn, so it's very disrespectful in that regard," he said.
Mr Jones also applied for an Australian military service medal and was denied the accolade by the defence department, Mr Thomas said.
"The Australian Defence medal is for all members of the Defence Force who have served for four years of continuous service and if you don't do that, then you are not entitled to wear (it)," he said.
"He hasn't done that, so he has no entitlement to wear it."
Mr Jones will remain a member of the council until February 22, 2026.
An extraordinary election to fill his position will be held on a date to be fixed.
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