The NSHL survived for 8 seasons. After their 7th season, they tried to expand to increase the competition in the small league, but the expansion was blocked by the NOHA. The league threatened to take the issue to the Ontario Hockey Federation, but nothing came of it.
In 2004, the NSHL took a leave of absence from the NOHA. The Wawa Travellers were the only healthy team that still wanted to compete in the NSHL. The Marathon Renegades left the league for a season to attempt to find better ways of drawing players and came back in 2005 to find there was nothing left. The Thessalon Flyers were officially defunct as their owner was thrown out of Hockey Canada for shady business practices. The last team, the Aguasabon River Rats left the league because they did not want to compete in such a small league, they left for the rival TBJBHL with an all-star contingent of NSHL players, lost their 2005 league final and never came back. With the Wawa Travellers being the only team registered to the league in 2004-05 and for the 2005-06 season, the league official closed its doors in early 2005.
In the aftermath of the dispersal of the league in 2004, the Aguasabon River Rats took a shot at covering the distance to play in the Thunder Bay Junior "B" league. They last only one season, but were regular season champions. In 2006, the Marathon Renegades came back to life to play Junior "A" in the Superior International Junior Hockey League. The Wawa Travellers have attempted ever since the folding of the NSHL to enter the SIJHL, but lack a core financial sponsor.