Biddy Fraser-Davies, who sits on the board, said the Eketahuna Playcentre had started as a playgroup intended as a place where mothers could interact with each other and their children and share a cup of coffee.
That "informal arrangement" had unfortunately morphed into a play centre with a " hierarchy and rules".
Deputy board chair Katrina Dimock said it was sad to know the playcentre had closed and things had not worked out well.
"But it doesn't mean a play group couldn't be maintained in the town which would have board support." She said there was not much more that could be done until the mediation meeting when "we will see where we stand on the deadlock". Apart from the possibility of utilising the playcentre's equipment for a revived playgroup, the board had been contacted by an early childhood education company interested in setting up in the old lower school building.
That would be a commercial operation run by a husband and wife in business as Educare Management Ltd, and would be a separate concern from a town playgroup.
The planned mediation meeting comes after a detailed discussion at the May meeting of the community board, which was attended by Wairarapa Playcentre Association president Dee Norling.