Regulators have approved the dissolution of the Town of Springhill Nova Scotia effective midnight March 31.

In a decision released Wednesday morning, the province's Utility and Review board ruled dissolution is in the best interests of residents given the town's financial and infrastructure challenges.

Springhill (population 3,800) will become part of the Municipality of Cumberland County.

The ruling says Springhill is in "a serious and deteriorating financial condition."

"As a result...it is no longer able to borrow any funds from the Municipal Finance Corporation, it has no capital reserves, and its line of credit with the bank is effectively at its limit. Moreover, the town is no longer able to maintain and meet its infrastructure needs," the ruling states.

The board accepted that dissolution will avoid a punitive $2-million pension top up owed to unionized police officers if the town switches police services to the RCMP.

In fact, the dissolution order was specifically timed.

"The board heard evidence that the town can avoid the penalty provision if it dissolves prior to April 1, 2015. The town and municipality requested that the dissolution be effective at 11:59 p.m. on March 31, 2015. The board approves this

request."

The McNeil government has pledged millions of dollars over the next five years to ease the transition including $5.9 million in equalization, $3.1 million for infrastructure and $1.6 million earmarked for roads.

Last month the Utility and Review Board approved the dissolution of the Town of Bridgetown.

An application to dissolve The Town of Hantsport is still before regulators.