The board of the Fairfield-based Maori immersion school asked the Ministry of Education if it could relocate to the High St premises in March this year, after it was officially closed on February 28.
Kura principal Amiria Stirling said the proposed move was inspired by a board of trustees consultation of the Maori community in Dunedin last year, which found many parents were not sending their pupils to the kura because it was not as accessible as many in the community would like.
It was too far away for some, and not on the way to work for many parents, she said.
The kura has 12 pupils on its roll at present.
However, Ministry of Education group manager, property, Kim Shannon said the kura's request was denied because its roll was too small.
"The Ministry of Education will not transfer TKKM o Otepoti to the High St site unless it reaches the establishment threshold for new kura of 35 pupils.
"If TKKM o Otepoti succeeds in growing its roll, the ministry will work with the kura on alternative accommodation options."
Miss Stirling said the decision was difficult to accept, but it was understandable.
"It has made us realise what effect the wider Maori community has on our school.
"The Maori community is not as strong or vibrant as we would like."
She said the dream of relocating to a more accessible site was not dead, and the board of trustees would now put all its energy into building the school's roll.
"The biggest issue is transport - getting pupils here. So we have some ideas about car pooling and other transport ideas which the board will discuss."
Realistically, it could take two to three years to reach the required roll, she said.
Ms Shannon said no decision had been made about the disposal of the former High Street School site yet.
"The ministry expects a decision about the disposal of the High Street site before the end of the year."
She said the Public Works Act process for disposing of closed school sites consisted of consultation with other Government agencies or local authorities; offering the property to the former owners or their willed successors; offering the property to iwi; and assessment by the Office of Treaty Settlements of any claim specific or individual interest in the property.
At the end of the process, the property could be placed on the open market for sale, she said.