However, the merger was opposed by many residents. Residents did not adopt the new city, instead continued to refer to themselves as being from Daliyat al-Karmel or Isfiya. The most vocal opposition was from Isfiya, and in February 2008 residents announced their intention to join the Kadima party in order to eliminate the Kadima leadership via primaries, and cancel the merger.
On 5 November 2008, the Knesset approved the cancellation of the merger before the 2008 municipal elections on 11 November, although the separation only took effect on 1 December 2008, and new elections were held in June 2009. The two original towns returned to being separate local councils.