The ensuing crisis saw Lowe overthrown as Premier and resign from the Labor Party, acting as an independent for the remainder of his political career.

The Department of the Environment was instructed to advise the HEC to undertake an environmental impact assessment and report, which when tabled to Parliament recommended proceeding to flood the Franklin.

Several alternative proposals were raised: the establishment of a national park on the same site, and a large number of submissions questioning the project and recommending no dam be built at all.

Lowe suggested a compromise: the construction of a dam on the Upper Gordon, upstream from the Franklin above the Olga River (Gordon-above-Olga).

It also caused a deadlock in the Tasmanian Parliament: the House of Assembly rejected the HEC's Lower Gordon (Gordon-below-Franklin) dam, and the Legislative Council rejected the lower house's legislation, and voted against the Upper Gordon (Gordon-above-Olga) dam, insisting they proceed with the original proposal.

Shortly afterwards, however, he successfully ran for the Legislative Council representing the electoral district of Buckingham from 24 May 1986 to 2 May 1992 when he retired from politics.

[7] Lowe was made a Member of the Order of Australia in the Queen's Birthday Honours in 2000, for service to the community of Tasmania, particularly in the area of social welfare, to the development of health policy, and to the Tasmanian Parliament.