Morris Iemma's vision for the future has been resoundingly rejected by his colleagues resulting in the end of his political career.
But he insists he is leaving NSW Parliament on his own terms.
Mr Iemma said he went to his Centre Unity faction on Friday morning with a plan to renew the government via a sweeping cabinet reshuffle, but "that was not accepted and accordingly I tendered my resignation".
"My colleagues did not want me to resign but the point that I made was that I had a list of members that I wanted serving in my cabinet and that was not possible, and I put that forward believing I was doing the right thing and the best thing for the government," he told reporters.
In a dramatic day at NSW Parliament, Nathan Rees was appointed as Mr Iemma's successor, with Carmel Tebbutt as his deputy.
Mr Iemma subsequently announced he was resigning as Member for Lakemba, in Sydney's southwest, and would resume life as a husband and father.
In his final press conference, the outgoing premier said he never sought personal glory, perks or a place in the history books.
When asked what words would sum up his premiership, Mr Iemma said: "Getting things done, doing the right thing, doing his best."
"Leaves as premier and goes home as husband and father.
"There are five people at Lakemba who will be very happy to see me.
"At the end of the day, that'll do me."
He said he hoped his legacy would be one of reform, listing improvements in mental health services as one of his proudest achievements in office.
He also nominated "disabilities, our water reforms and the start of electricity reform."
"I said that my premiership in services, in these social services, would be judged by the progress I could make in mental health and disabilities.
"I passionately believe on my way out that no one will take mental health for granted again as a result of the reforms my government initiated.
"It's now front and centre of the national agenda as well as it is on the state agenda."
He endorsed his replacement, praising Mr Rees as the "best possible choice".
He said Mr Rees would "surround himself with a fresh new team," before naming MPs including Carmel Tebbutt, Verity Firth, Kristina Keneally and Linda Burney.
Mr Iemma's said his proposed cabinet line-up had included Steve Whan, Michael Daley, Tanya Gadiel, Virginia Judge, Jodi Mackay and Paul McLeay.
"When my colleague (John Watkins) announced his retirement as the deputy premier, my view was this - that we had an opportunity to renew and refresh the government.
"The second point I want to make is that that didn't just stop with Michael Costa.
"Others had a contrary view, as a result if they don't want to do it my way, they can get on without me."
Ms Costa was informed by Mr Iemma on Thursday night that he would not be part of the new cabinet.
Mr Rees is expected to decide his new cabinet on Sunday but says it will not include Mr Costa.
Mr Iemma said he had always sought change and growth for NSW.
"My only test was to make the right decisions for NSW and the people in NSW, the right decisions for our kids' future," he said.
"That's why I went to the last election promising to secure our water supplies, that's why I attempted reform of the electricity industry, that's why I fought for the northwest metro."
Prime Minister Kevin Rudd has praised Morris Iemma's substantial contribution to public life in NSW over two decades.
"Morris achieved much for NSW, both as a senior minister and premier of Australia's largest state," the prime minister said in a statement.
"Morris put mental health on the national agenda, brought James Hardie to account and made tough decisions for NSW's future in the areas of desalination and energy reform.
"Morris also recently oversaw a highly successful World Youth Day festival."
Mr Rudd said Mr Iemma's ability, work ethic and leadership skills were acknowledged when he replaced Bob Carr as premier in 2005.
"Two years later he delivered Labor a record fourth consecutive four-year term in NSW.
"I wish Morris, Santina and their family all the best for the future."