The town of Canso will cease to exist on July 1 when it becomes amalgamated with the Municipality of the District of Guysborough.
The Nova Scotia Utility and Review Board released a decision on Thursday approving the dissolution of the 111-year-old community. One polling district was added to Guysborough council, increasing it from seven to eight to allow for a Canso representative.
Frank Fraser, the current mayor of Canso, had argued the community should have village status and share services with the county.
But the Utility and Review Board ruled that would not save enough money and would simply add a layer of administration that was not needed.
"My opinion was that we would have some self-governance if we kept it close to the people. We're in a sort of urban town because we have water and sewer," Fraser told CBC News on Thursday.
"It's going to be rather difficult to become part of a rural municipality. In that sense, I'm very disappointed."
Fraser will be Canso's representative on the council of the Municipality of the District of Guysborough between the town's dissolution and municipal elections in October.
The province is providing financial help for the transition, particularly for severance packages and retraining of town employees and upgrading its water utility.
Lloyd Hines, the warden for the Municipality of the District of Guysborough, said in a statement that he commends the residents of Canso for their proactive involvement in the dissolution process.
"On behalf of the residents and Council of MODG, I am honoured to welcome the great historic fishing community of Canso to join our large family of communities in the Municipality of the District of Guysborough," he said.
"Together we are stronger."
Canso was once a bustling fishing port but fell on hard times with the decline of groundfish stocks and the closure of a local fish plant.
Located on the northeastern tip of mainland Nova Scotia, Canso has been a fishing port since 1604 and an independent town with its own charter since 1901.