His rejection follows major publicity surrounding a personal matter that came to light several months ago.
The previously popular Member for Redlands, was not able to overcome the 'rank and file' of branch membership, despite overcoming the earlier party endorsement hurdle for support.
In a vote at Redland Bay late last month, Peter Dowling was defeated in a tight vote 50-43, after it was thought that he still might be able to gain seat endorsement.
The branch rejection is the second for the LNP, with the Moggill branch the week previously supporting the sitting member Dr Bruce Flegg in his battle against the State branch's choice, Dr Christian Rowan.
Peter Dowling has taken the decision by the local branch stoically.
He told The Friendly Bay Islander: "The decision has been made. Politics is a numbers game and I didn't have the numbers on the day. The local branch of the LNP wants a new representative.
"I put my case and stood my ground on the important issues. I believe I have been a good, hard-working Member of the Queensland Parliament.
"However, I accept my failings and regret any hurt that my actions have caused. It happened, I am deeply sorry, and it is time now to move on," Peter Dowling said.
He added he was 'particularly proud' of what he had achieved for the seat of Redlands.
"I have worked tirelessly on behalf of the people of Redlands and I believe have achieved some considerable results."
He said two areas in recent times he believed were significant achievements for the people of Redlands and the Bay Islands.
One was his untiring support and pressure for Weinam Creek and Toondah Harbour to be declared Priority Development Areas by the State Government, and the other was achieving Translink services for the Bay Islands passenger ferry operations.
As for the future, he is not quite sure.
He believes he may be qualified to become involved in media commentary in some form.
"I will remain positive and am hopeful that my political experience may prove of some value in a consultancy form," Peter Dowling said.
The Redlands Branch of the LNP will have to make a selection in the coming days and weeks on who will represent them for the State election to be held no later than June 2015.