Buoyed by his government's strong performance in the polls, Greiner called a snap election for 25 May 1991.

Despite widespread predictions by political and media commentators that Greiner would be easily re-elected to a second term, the impact of the Government's policies, particularly in terms of service cuts and increased charges, caused many voters to turn to Labor.

Greiner was forced into a minority government, relying on support from four independent politicians.

Greiner's parliamentary majority was further eroded with the decision of Terry Metherell to become an Independent in late 1991, and with the loss of The Entrance in a 1992 by-election following a Court of Disputed Returns overthrowing the original result.

[2] Despite beginning proceedings before the New South Wales Court of Appeal, Greiner resigned on 24 June in the face of a warning from a group of independent politicians who told Greiner that unless he resigned, they would withdraw their support from the government and support the no-confidence motion.