The Town of Pine Falls-Powerview passed a motion asking the province to take over the administration of the community of 1,300 people.
Councillor Trish McLarnon says frustration over the loss of jobs and economic development has reached its boiling point.
Tembec closed the paper mill in Pine Falls in 2010, and while the Manitoba government committed $1 million in 2009 to explore economic development, little has materialized.
McLarnon says the council notified the provincial government last month they would walk off the job.
McLarnon wants a public meeting with community to give them further instructions on next steps.
“I’d like to see the government step in and give us a hand financially just over this transition period while we’re looking for further industry to relocate here.”