The bid to amalgamate North Cowichan and Duncan failed on Saturday.
Residents of North Cowichan voted in favour of amalgamation, but residents of Duncan voted strongly against it.
Under provincial legislation, 50 per cent of the votes in both municipalities needed to favour amalgamation in order for a single new municipality to be created.
Votes were 3,051 for to 2,140 against in North Cowichan and 835 against to 395 for in Duncan.
Formerly part of the Municipality of North Cowichan, Duncan split off to become a separate city in 1912.
More to come