The silver screen should return to Wantage now an inspector has thrown out plans to convert the former cinema into flats, campaigners have said.
Supporters bidding to save the Regent Cinema in Newbury Street breathed a sigh of relief when a Government planning inspector said the building must remain a facility for public entertainment.
He said turning it into flats would have an adverse effect on the town centre.
Site owner the Oxford Development Group has now failed twice to get a change of use approved.
It is hoped negotiations will now start with potential cinema operators.
Tim Weekes the chairman of Friends of Wantage Cinema, said: "Quite a few people have to travel to Didcot, Swindon or Oxford, so a cinema in Wantage would save time, money and petrol.
"We need something to help the youngsters because there is nothing now apart from the Sweatbox youth club."
Town councillor Andy Crawford - also a member of the Friends of Wantage Cinema - said: "This is truly great news.
"For years, the owner has been refusing to talk sensibly to local people who want to see the cinema resurrected."
Town mayor Lorraine Todd said: "My colleagues on the town council, especially the late Jim Moley and former mayor Jenny Hannaby, worked hard at every turn to resist the change of use.
"We are very grateful for the tremendous support given to the campaign by so many local well wishers."
The cinema, which had been running at a loss, showed its last film in September, 2005.
About 400 people turned out to a public meeting called two years ago to drum up support for the campaign to save the two-screen cinema.
The meeting led to the formation of the Friends of Wantage Cinema group.
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