The NDP scored a surprise electoral success in the 1997 federal election, winning six of Nova Scotia's eleven electoral districts. This new-found electoral success boded well for the NDP's provincial party, which was able to take advantage of the new wave of popularity. Prior to 1997, the Nova Scotia NDP had not been considered contenders to form a provincial government. Chisholm subsequently lead the NDP to a record 19 seats in the 1998 provincial election, putting them in a tie with the governing Liberal Party. The Liberals were able to continue ruling, as they received support from the third-place Progressive Conservatives, who held 14 seats. The NDP formed the Official Opposition, marking the first time they attained that position; the Co-operative Commonwealth Federation, were the last democratic socialist party to hold that title, back in 1949.
1999 Nova Scotia election
15 months later, the Liberal government was defeated by a motion of non-confidence from the Conservatives, forcing an election in the summer of 1999. During the campaign, it was revealed that Chisholm had a past criminal record for driving under the influence of alcohol when he was 19 years old. The NDP lost eight seats during the campaign, which saw the third-place Conservatives elected to a majority government. During this period, the NDP shared official opposition status with the Liberals. The NDP became sole official opposition upon Russell MacLellan's resignation, and the subsequent election of Progressive Conservative Cecil Clark, which gave the NDP 11 seats to the Liberals' 10. Chisholm unexpectedly resigned the leadership after the campaign, at the November 6, 1999 NSNDP provincial council meeting. He said that he wanted to spend more time with his family and could not subject them to ten more years of political life. He remained sitting as an MLA in the Legislature and remained as leader until a new one was elected. He was succeeded by Helen MacDonald in 2000; and after she could not win a seat in the house, Darrell Dexter eventually became the leader in 2001. Chisholm did not run for re-election as an MLA in 2003 provincial election.
Private life
After the 2003 provincial election, Chisholm returned to the labour movement and worked as researcher for the Canadian Union of Public Employees. Since 2004, he has been a member of Dalhousie University's board of governors. In 2007, he became CUPE's Regional Director for the Atlantic Region. In the spring of 2009, he started a consulting firm with his wife Paula Simon: Simon Chisholm Consulting.