Campaigners said it was a sad day for Witney as Moorview Hospital closed its inpatient ward doors for the last time.
Oxfordshire & Buckinghamshire Mental Health Partnership NHS Trust confirmed at the end of May that it was shutting the 15-bed hospital, which treated elderly people with mental health problems, despite a fierce campaign by residents in the town.
Last week's closure came sooner than expected, although campaigners - who organised an 8,500-signature petition against the move - were not surprised.
Mental health patients will now have to travel to the Fulbrook Centre, at the Churchill Hospital, in Oxford, or the Fiennes Centre, at Banbury's Horton Hospital. Moorview staff have been given the option of relocating.
The mental health trust decided to close the hospital to reduce an estimated £7.2m hole in its budget.
Juliet Morris, a Witney resident who has supported the campaign against Moorview's closure, said: "It is the end of a very valuable service. There are concerns about mental health provision in the area from now on."
As reported in the Oxford Mail, Oxfordshire County Council plans to turn Moorview into a day centre for elderly people, integrating day centre services at The Elms, in Church Green, and Moorland Centre, in Dark Lane.
But there has been opposition from campaigners, who say the new 'super day centre' is being set up to cut costs, not improve services.
Witney MP and Conservative Party leader David Cameron praised the efforts of those involved in the campaign.
He said Moorview's closure was a "deep disappointment" for many who recognised the tremendous work it did.
A spokesman for the trust said it would be working closely with staff, patients and carers to ensure appropriate alternative care was provided.
The new day centre is due to open in April 2007.
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