Of the 99 votes, 66 were against resettlement and 33 were in favour.
Budget 2013 announced a resettlement package on a volunteer basis for small communities such as Grey River.
Finance Minister Jerome Kennedy announced the government will offer as much as $270,000 for each household to relocate, nearly triple the old limit of $100,000.
Previously, to benefit from relocation assistance, everyone in an isolated community had to unanimously agree to shut down the community.
According to the budget speech, the province would offer these benefits to communities where 90 per cent of residents vote to relocate.
Grey River is only accessible through Burgeo by boat or by helicopter, and is approximately 40 kilometres west of Burgeo.
Nestled between three mountains, the community still relies heavily on the small boat fishery, which harvests ground fish, lobsters and more.
The community provides many tourist attractions such as recreational fishing, hiking and snowmobile trails in the winter.