Relations between the Ministry and OUC grew even more strained resulting in a government decision to dismiss the new Board in 2004 and replace it with a public administrator. At the same time, the Government announced that OUC would be dissolved, with the University of British Columbia taking over the university operations and the non-university operations becoming the basis for a new community college, which would later be named Okanagan College.
The Ministry-OUC relationship deteriorated even more, resulting in a government decision in 2004 to abolish the new Board and replace it with a public administrator. At the same time, the Government declared that OUC would be dissolved, with the University of British Columbia assuming control over university operations, while non-university functions would give rise to a new community college, later named Okanagan College.