Local Government Minister Peter Gutwein has announced members of the Huon Valley Council will be dismissed next month.
Mr Gutwein announced in Question Time on Tuesday morning that a commissioner had been appointed to oversea operation of the council for the next 12 months.
The decision comes after Huon Valley Mayor Peter Coad withdrew from participating in mediation sessions established to resolve conflict between councillors.
Cr’s Liz Smith and Ian Mackintosh also withdrew from mediation.
The mediation sessions were among a number of recommendations put forward after a Board of Inquiry conducted an investigation into the council.
The report handed down in June this year also recommended the council be dismissed, however, Mr Gutwein gave the council six months to avoid the action.
Mr Gutwein said there were no plans to call a council election at this stage.