Municipal Relations Minister Mark Furey issued a statement late Tuesday saying he made the decision after meetings were held with the six municipal units in the county.
Furey says it's clear there is no consensus among the local councils on how to move such a plan forward.
The proposed study was originally suggested by the Pictou Chamber of Commerce.
The provincial government agreed in 2010 to pay up to $150,000 for the study on the condition that all six councils agreed.
Furey says that never happened and the province has backed out.