Mrs Chadwick was positioned at 34 on the Labour Party list and with Labour only recording 27.1 per cent of the party vote she announced the end of her 12-year political career late last night.
New Zealand First candidate Fletcher Tabuteau was a distant third in the Rotorua electorate race with 2015 votes, while Conservative Party candidate Daryl Smith received 845 votes and Mana's Grant Rogers 445.
Mr McClay said he would be sad to see his rival leave politics but was very pleased with the mandate handed him by Rotorua voters.
"I have a huge amount of respect and admiration for Steve, we are both very passionate for Rotorua and she can feel quite proud with what she has achieved."
Mr McClay said he was humbled at his majority and the people of Rotorua obviously wanted him to continue as their electorate MP.
"It's a good feeling and I hope to continue working as hard as I can for the people of Rotorua for the next three years," he said.
Mrs Chadwick was generous in defeat, saying Mr McClay ran a clean campaign, but was obviously saddened at her loss.
"I'm really going to miss being in Wellington, especially since my children are down there.
"I'll be taking some time off for myself, its been 12 years, and you spend a lot of that time putting others first instead of yourself. The door's been closed for me by the people of Rotorua and I accept that."
