Mansfield District Council has decided to scrap its Mansfield Homes Ltd housing developer once its current contract expires.
A decision was made on Tuesday by mayor Andy Abrahams to scrap the firm, which it initially set up to build council properties.
Mansfield Homes was set up in 2014 with the aim of building about 220 two to five-bedroom homes to sell on the open market to help meet housing demands in the district as identified in the draft Local Plan, and generate income to pay for council services.
It used a £8.8m loan from the council, to fund its first project to build 23 executive homes.
The decision means that once the properties in the company's first project, Wildflower Rise, have been sold and the loan to the council repaid and all profits from the company shared back to the council, the company will cease trading.
It will remain listed with Companies House as a dormant company.
The council will instead focus on building 300 more council and affordable houses in-house over the next four years, which it outlined in a report earlier this week.
Jill Finnesey, head of housing at the council, said: "The focus of the council is currently to concentrate on providing more affordable housing with the announcement of plans to build 300 council homes for rent and shared ownership over the next four years."