Stephens was shot to death in June, but was just now identified as a transgender woman.
It was a long journey to this weekend's jubilant event.
The new vote in Starkville, Miss., came after the group organizing the parade filed a federal lawsuit.
The denial is textbook anti-LGBT discrimination, say Starkville Pride organizers, represented by prominent attorney Roberta Kaplan.
The aldermen denied a permit for the parade and offered no explanation why.
The Oscar-winning actress says she wants "brown kids" to envistion themselves as a superhero.