Greg Selinger is set to return as premier of the province as the NDP captured a decisive win in the Manitoba election.
The PC's Hugh McFadyen, meanwhile, said he would step down as leader of the party.
Unofficial results late Tuesday night showed the NDP with 37 seats, the PCs with 19 and the Liberals with one. To form a government in the legislature, a party needs a minimum of 29 seats.
The NDP gained one more seat, compared with their results in 2007.
The election had been closely fought race, with the PC party and NDP nearly tied in support in polls in recent weeks.
The PCs attacked the NDP over its record since it formed government in 1999. The NDP, meanwhile, suggested the PCs would privatize Manitoba Hydro.
The NDP have served as the governing party in Manitoba since 1999.
The Liberals, meanwhile, led by Jon Gerrard faced a tough uphill battle, with some senior Liberals encouraging party supporters to vote NDP in closely contested ridings to keep out the PCs.
Gerrard, however, managed to capture his seat in River Heights, a race that some thought he might lose.
In a speech, Gerrard thanked voters for supporting him a fourth time. "It is great honour to represent River Heights," said Gerrard. He congratulated Selinger and the NDP and said he looked forward to working with them in the legislature.
He also asserted that the Liberals had a strong future in Manitoba.
Seine River was a riding political pundits were watching closely. The seat was held by NDP health minister Theresa Oswald. Former city councilor Gord Steeves ran as the Conservative candidate for the riding, but ended up losing out to Oswald.
"It's been a long time since I've been at this end of the ledger in terms of counting votes, but I guess these things happen in politics," said Steeves.
"It was a very challenging time and we had our ups and downs, but I had a team here that was not to be beat and we worked...and there's no substitute for that, so we're delighted with the outcome of course," said Oswald.
Steeves said he's contemplating his next move but hasn't made any decisions yet.
Selinger, meanwhile, appeared jubilant as he addressed supporters and offered emotional hugs to his family.
"Tonight, we have made history in Manitoba," said Selinger. He thanked supporters, volunteers and staff members that worked on the NDP campaign.
"We will get back to work," said Selinger, citing health care, the economy, jobs for young people and making communities safer as priorities.
"It's with a sense of humility and gratitude that I look to the next four years of following up on what we discussed in the election," Selinger told CTV News on Wednesday.
The Greens, who ran a record number for the party of more than 30 candidates, were shut out in the election.
Prime Minister Stephen Harper issued a statement after Selinger's win.
"I look forward to continuing to work with him on promoting prosperity in the province and country and on addressing issues of importance to Manitobans and all Canadians," said Harper in the statement.
In his speech, McFadyen said the PC party ran a campaign about the future, but he admitted disappointment with the outcome.
"We didn't get the result we wanted," McFadyen told supporters before announcing step down.
Early estimates pegged voter turnout for the election around 56 per cent, compared with 56.75 per cent in 2007, 54.17 per cent in 2003 and 68.11 per cent in 1999.
Elections Manitoba said it's still counting ballots in some ridings, including for two very close races in Kirkfield Park and St. Norbert. That's expected to be completed by Friday. The results won't affect the NDP's majority.
- with report from CTV's Jeff Keele, Caroline Barghout, Nancy Carlson, Jon Hendricks and Josh Crabb
