A question on the issue was to have been asked in conjunction with the municipal election.
Andrew Butler, chair of the Hay River District Education Authority, says ratepayers need more information on the issue.
"This way we could explain to them what level of authority we would want at this time," he says.
Butler estimates a new board would cost about $400,000. One option is increasing the education taxes in Hay River by roughly $250 per $100,000 of assessed property, a 71 per cent increase.
Homeowners now pay about $352 for $100,000 of assessed property. The town collects the money and sends it to the territorial government.
The DEA had asked Education Minister Jake Ootes for the non-binding vote. Only he has the power to ask such a question in an election.
"Both the DEA and the town felt there needs to be more work on the question," says Ootes. "We are prepared to work with them."
The cancellation was confirmed by returning officer Selena Pukanich, who was advised on Thursday by the Department of Education, Culture and Employment that the vote would not go ahead.
The now-rejected question reads: "Do you support the creation of a stand-alone District Education Authority with the full administrative services of a school board for the Town of Hay River? This would require an increase in school tax levies to raise the additional cost of the new school board." The DEA has asked Ootes to set up a committee to gather information and determine costs. It is suggesting representation from the DEA, Ootes' department and the town.
Butler believes a committee could finish its work in six to eight months. After that, a plebiscite could be held.
It is unclear if the South Slave Divisional Educational Council (SSDEC) -- the organization the DEA wishes to leave -- would be represented on the proposed committee.
Butler was kicked off the SSDEC earlier this year, allegedly for violating its code of conduct. However, the DEA supports its chair and refuses to name a replacement to the SSDEC.
The Hay River DEA has long advocated separating from the SSDEC. Among other things, the DEA argues it would mean increased funding, better response to local priorities and more jobs in Hay River.