He said all districts should have the right to manage their own destiny.
"For me, local government is about local communities having the ability to determine their own future, as opposed to having an amalgamation forced upon them, which can now happen due to the 2012 changes to the Local Government Act.
"I just don't think forcing amalgamation on any council is democratic."
Labour, the Greens, the Maori Party and NZ First voted for the bill, while Peter Dunne and David Seymour voted with the Government against it.
"It's a real shame because the bill sought to legislate the official policy of Local Government New Zealand, which represents the nation's mayors and councillors," Mr Nash said.
"In fact, a number of the National speakers who opposed the bill actually gave speeches which seemed, on the surface, to support the proposition. But it was plainly obvious that they hadn't spoken to their local mayors and councillors, and were just following the party line.
"I suppose that's the disappointing thing," Mr Nash said.
Mr Nash said none of the MPs went to their local mayors to discuss the bill.
Hastings Mayor Lawrence Yule was not surprised to hear of the bill being voted down.
"The various parties have their positions and this is well known," he said.
Mr Yule has noticed an uplift in people wanting information ahead of the vote.
"Many people seem excited about exercising their vote in a few weeks' time.
"This should ensure a good turnout and is positive for a region-wide vote."
Napier Mayor Bill Dalton said the rejected bill was disappointing and showed that the likes of Peter Dunn were "gutless".
"He's just toed the line, it would have been pretty reasonable to allow the bill to go to a select committee.
"He still could have voted against it, but to not allow an open dialogue between MPs, mayors and a select committee isn't very democratic."
National MP for the Tukituki electorate Craig Foss could not be reached for comment.