The Osaka Municipal Assembly on Monday voted down Mayor Toru Hashimoto's plans to integrate the city into a series of semi-autonomous zones.
Following the vote, which saw only Hashimoto's Osaka Ishin no Kai (One Osaka) party supporting the bill, the mayor vowed to reintroduce it again next year. He also indicated he may introduce a separate bill to hold a referendum on the issue.
But with an election looming in April, and the fact that any referendum would first require approval from the assembly, which remains opposed to the integration plan, Monday's rejection represents a major setback for Hashimoto's efforts to fundamentally restructure Osaka and could spell trouble for his party at the polls.