In 1954 Davidson walked out of a party conference that called for parties in municipal politics. She felt that party politics should stay out of local councils. After that she became more involved in local politics and drifted away from the party. When the CCF merged with the Canadian Labour Congress in 1961 to form the New Democratic Party (NDP), she refused to join due to its partnership with the unions. She said, "I never joined the NDP. I didn't like the NDP from the beginning. I came to believe that socialism wouldn't cure the ills of the world. I couldn't see it."