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The Golden Square Pool will close after council voted five to four in favour of closing it.
Councillors debated the issue, and an alternative motion to mediate with residents and for further consultation at a cost of $50,000, for about an hour.
The motion failed and the council will now look to create new plans for the site.
EARLIER:
Thirty-five people decked out in blue have gathered at the council meeting deciding the fate of the Golden Square Pool.
Many were holding signs and chanting as councillors and staff entered the town hall in the hope council would reverse its previous decision to get rid of the pool.
Save the Golden Square Pool group member Linda Howell said she hoped the council would take notice of the rally.
"This may not be the end of the saga," she said.
"We've got a few things on the go and a few avenues to explore to continue the fight."