The Liberal Democrats and Independents have joined forces to take control of Torbay Council.
It follows the elections two weeks ago where no party won enough seats for outright control.
The Conservatives are the largest party, but now the Lib Dems with 13 seats and Independents with eight are linking up.
They say they have shared values and will work together on their priorities of housing, helping deprived areas and regeneration.
Council 'making progress' after 'inadequate' report
Local Democracy Reporting Service
Torbay Council is “starting to make some progress” in improving children’s services almost a year after they were judged inadequate for a second time, according to Ofsted inspectors.
It was the second monitoring visit since the council’s children’s services were declared inadequate for a second time last June.
The visit by two inspectors in April followed “serious and widespread child protection concerns” identified in January.
A report after the April visit said: “The local authority is starting to make some progress, from an extremely low base, in improving services for its children and young people, but these improvements remain exceedingly fragile.”
Torbay council’s director of children’s services Alison Botham welcomed the recognition by inspectors of the hard work and commitment by staff and managers, and added: “I know that there is still much to be done.”
Devon's Local Election results have been coming in throughout the morning.
The Liberal Democrats gained 10 seats in North Devon. They have become the largest party taking 21 of the 42 seats, missing out on taking overall control of the council by a single seat, though one seat is still to be contested due to the death of one of the candidates.
Labour retained Plymouth and gained an extra seat. It was a difficult night for the Conservatives in the city, though. They dropped to third place behind UKIP in several wards.
Labour has retained control in Exeter. The Green Party won its first seat in the city, with Diana Moore winning in St Davids.
No party has won a majority in Torbay, although the Conservatives have the most seats with 15, leading the Liberal Democrats by two.
You can find more news, results, and reaction from Devon's local elections here.
No majority Torbay: 'Interesting' conversations to be had
BBC News Online
In Torbay the Conservatives ended up with 15 seats, the Liberal Democrats 13 and the Independents eight.
Although this means no overall majority, Conservative councillor David Thomas is hopeful for the Bay.
"We are the biggest party, we have 15 seats but not in control," he said.
"There will be some very interesting conversations to be had over the next few days.
"Hopefully, enough people who have been elected want to see Torbay move forward."
Former Torbay Mayor Nick Bye has held his seat in Wellswood with a big majority, however the Liberal Democrats are edging closer to taking control of the council.
Mr Bye says he's confident the Conservatives could still end up as the largest party on the council "but we'd just have to work with other councillors and the Independents and see what is best for the bay".
"It's a bit mixed but let's wait and see what the final scores on the doors are.
"It's about working together in a grown up way," he said.