The election is approaching and Parker notices the increasing influence of Councilman Tommy Carcetti and deduces that he may be planning to run for mayor.
Carcetti seizes on Royce's unwillingness to divert funds into a witness protection scheme, drawing the support of Watkins and other black politicians.
When Royce's office gets wind of the existence of drug-tolerant zones set up in West Baltimore by BPD Major Howard "Bunny" Colvin, collectively known as "Hamsterdam", Parker again advises the mayor to fire Burrell.
Parker and Watkins realize that such a decision would be disastrous for Royce, earning the loss of the black community's support and the ridicule of the government.
Royce is given more reason to be displeased with Burrell when these key political figures's records are subpoenaed by the BPD's Major Case Unit.
[2] Royce gets more angered when Burrell fails to successfully downplay the witness investigation and promises to fire him at Parker's request following an election victory.
Watkins also believes that Royce disregards the black community, cynically using Marcus Garvey-inspired campaign posters to win their vote.
The mayor's security detail leaks the news of Royce and Watkins' falling out to Deputy Commissioner William Rawls, who believes that Carcetti can do better things for the BPD.
Because of this, Royce initially values Burrell's loyalty but is later angered by the department for issuing subpoenas against election fundraisers and making the public aware of the murder of a dead state's witness.
Following the election, Royce and Demper both lose however and a new front office consisting of former Councilman Thomas Carcetti and State's Attorney Rupert Bond take their places respectively.
To appease the two of them, especially Carcetti whom he views as a threat to his chair, Royce criticizes Ervin Burrell and other public figures pressuring them to meet the council's demands if for any other reason to guarantee re-election.
It is noted early in Season 3 that Royce receives no support from the first district represented by Carcetti as it is a predominantly white ethnic area in Southeastern Baltimore which has a history for voting against black politicians.
Royce also finds conflict with Watkins in the city's eleventh district for keeping incumbent councilwoman Eunetta Perkins on his ticket.
Coleman Parker remains loyal to Royce up until the election where following the loss, he plans to help a new candidate from Maryland's Eastern Shore with Carcetti's Chief of Staff Norman Wilson.
Royce also relies heavily on West Baltimore State Senator Clay Davis who when properly positioned is an instrumental player in gaining the necessary votes from specifically needed people.
To win against Tommy Carcetti and Tony Gray, Royce plays the race card in the election in Season 4 relying on Baltimore's black majority to vote for him.
Royce is shown to be married in Season 4 but is caught in an adulterous affair with a female secretary by Officer Thomas "Herc" Hauk.