Safe Water Alternative NZ Inc (SWANZ) has withdrawn its Judicial Review proceedings against the Hamilton City Council because it doesn't have the financial support to continue.
"It's apparent to us that without substantial financial backing from benefactors we unfortunately cannot continue," said SWANZ coordinator Trevor Crosbie.
"While we had a good legal case, our resources are limited compared with the deep pockets of the council. We are grateful for the goodwill and generosity of supporters and won't stop until we achieve our quest for safe unfluoridated water. We need time to explore our options, including the possibility of future proceedings on different grounds. We will not go away."
Mr Crosbie said another factor was "the growing number of challenges to fluoridation".
"We are confident fluoridation will be required to cease sooner rather than later as a result of these actions."
SWANZ had filed proceedings against council in April. They claimed council had not carried out a full consultative process when deciding to re-fluoridate the Hamilton water supply. Fluoride was restarted in July.