Cromer Town Council has pulled out of the bid to take over the resort's CCTV system amid concern about the cost of running it.
Members agreed 'reluctantly' on Monday not to pursue the take over - which would cost Cromer £39,000 a year - at a time when 'finances are tight' and other projects are also under way.
It was also noted some of the equipment was old and spare parts are no longer available for it, should it fail, but the camera covering North Lodge Park could be kept as a stand alone system.
North Norfolk District Council voted to axe the system in October to save £200,000.
Local members in North Walsham, Cromer, Sheringham, Wells and Fakenham - which are covered by the cameras - launched a bid to take them on and proposed to invest £2,500 in a report to look into how they could be managed.
Cromer now joins Wells, which has also pulled out of talks. The remaining councils are due to meet tomorrow to discuss their next step.
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