Voters in Carson City, Henderson, Reno and Sparks will continue electing public officials via citywide elections.
Republican Gov. Brian Sandoval vetoed SB457, which would have only allowed residents to vote for candidates seeking to represent the ward the voter lives in.
Democrats passed the bill through the Assembly on a party-line vote, and three Republicans voted with the Democrats in the Senate.
Reno voters overwhelmingly rejected ward-based voting in a ballot question last year, and the cities opposed the bill in the Legislature this session.
In a statement explaining his veto decision, Sandoval says the bill was rejected because it directly conflicted with what the constituents in the areas that would be affected by the bill wanted.