In the provincial elections of 1986 and 1988, he was the leader of the province's Confederation of Regions Party, a group that opposed the extension of French-language rights and sought greater autonomy for western Canada (unlike the Western Canada Concept and Western Independence Party, it did not seek full independence for the western provinces).
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He defeated Western Canada Concept leader and Incumbent Gordon Kesler and four other candidates in a high profile race to win his first term in office.
As leader he led an attempt to merge several Alberta parties into the Alberta Political Alliance, which proved to be a short-lived coalition of Social Credit, the Western Canada Concept and the Heritage Party, in 1986 but neither the Alliance nor Social Credit were prepared to run candidates in the 1986 Alberta election.
The provincial wing of the Western Canada Concept movement won more votes than the Saskatchewan Liberal Party candidate in over a third of Saskatchewan's constituencies; in three ridings the WCC candidate captured more than 1,000 votes.
Stiles first ran for the Progressive Conservatives in the February 1982 by-election in Olds-Didsbury that saw Gordon Kesler from the Western Canada Concept elected.