The detention of the Nikkei in internment sites was a temporary measure until the federal government was able to develop a permanent solution. On August 4, 1944, the Canadian government took further steps that would forever change the destiny of Japanese Canadians when they were ordered to either apply for repatriation to Japan or to move east of the Rockies.

With the War Measures Act about to expire at the end of 1945, Prime Minister Mackenzie King’s government issued three orders-in-council on December 17, 1945 to ensure that it would not lapse: PC7335 that identified who would be deported to Japan; PC7357 that stripped deported naturalized citizens of either their British or Canadian citizenship; and PC7356 that established a three-man commission whose role was to assess the loyalty of Nikkei and make recommendations as to who should be deported. These measures were taken despite the fact that no person of Japanese ancestry had been charged with crimes of disloyalty or sabotage during the war. Additionally the deportation of the Nikkei was considered to be a crime against humanity and contrary to international law.  In 1942, close to 21,500 Nikkei were dispersed from the protected zone to various locations across Canada, but primarily to remote areas in B.C.

The Nikkei were faced with a difficult and life-changing choice: leave for Japan or move east of the Rockies. Those wishing to demonstrate their loyalty would opt for relocation, while others who chose to move to Japan were considered disloyal. There were several reasons that some Nikkei opted for the latter. In some cases, family members wished to remain together or to reconnect with their relatives in Japan. There were some Issei, first generation, who felt that they could not rebuild their lives by resettling in another part of the country, and other Issei and Kika-Nisei, those born in Canada and educated in Japan, who preferred Japan to internment sites. There were also Nikkei who felt betrayed by their country. 

On January 24, 1947, federal government finally repealed the deportation orders. Over the one-year period, however, close to 4,000 Nikkei had been shipped to Japan and the relocation programme was almost at an end.