Moundsville voters rejected public bus service for the city that would have been provided by the Ohio Valley Regional Transportation Authority.
More than half of the city's voters - 56.7 percent, or 1,209 voters - cast a ballot in favor of the levy, compared to 923, or 43.3 percent, against.
However, since the levy is an excess levy, it requires 60 percent for passage.
This is the second straight election the OVRTA levy has failed in Moundsville. In November 2010 voters in Moundsville voted by roughly the same margin - 57 percent for to 43 percent against - in favor of bus service, which failed to meet the required 60 percent.
Benwood voters, however, approved an OVRTA levy renewal for two additional years beginning July 1, 2013. The current levy expires June 30, 2013.
A total of 345 Benwood residents voted in favor of the levy, or 83 percent, compared to 73 voters - 17 percent - against.
Benwood residents nearly lost their bus service this year after town council initially decided not to place it on the ballot. Council members were upset because the OVRTA board previously decreased Benwood's service to help fund trial runs to Moundsville and The Highlands. Stops in Benwood were reduced to once every hour, rather than once every 30 minutes.
However, after hearing from residents who said they wanted to vote on the matter, council changed its stance.