Hinman, who held the seat between 2004 and 2008, had announced in early February his plan to return to provincial politics.
But on Tuesday he said he actually withdrew his candidacy in late February.
He said he still believes in the direction of the party, in new leader Brian Jean and will be giving it his full support.
But he said he wants to put his family and his business first.
The current MLA, Gary Bikman, was one of nine Wildrose members who joined the Tory government in December.
Hinman has said he believes the party will rebound despite those members crossing the floor.