In 1979 the government finally put into action an ironhanded policy to abolish prostitution, and the hot springs 'hotels, once so vibrant and full of life, closed one after another. The Peitou Hot Springs Public Baths followed in the decline, and its ownership changed hands repeatedly, until at one point it was owned by three government departments and was split into three separate units.
政府於是在民國六十八年施行廢娼鐵腕政策，往昔弦歌不輟的溫泉飯店一一關閉，北投公共浴場也跟著北投沒落而在國民黨黨部、台北縣政府、台北市政府手中流轉，甚至曾有三個單位分割使用的情形出現。