Powys County Council has announced that Llandrindod library will be housed in the Radnorshire Museum so that the two organisations can share space, resources and staffing.
The council, which approved the disposal of the library's current building earlier this year, said combining the organisations was a positive example of how services can be remodelled to improve outcomes and make longer-term savings.
The move is part of its Sustainable Powys strategy to reevaluate how services are delivered to meet budget pressures and follows a model already adopted in Brecon, Llanidloes and Welshpool.
Councillor Richard Church said: “Our libraries and museums are trusted spaces, free to enter and open to all. Delivering a joint service from one building means we can provide a sustainable and long-term future for both while continuing to deliver and extend the health and wellbeing benefits that libraries and museums can offer.”
“Radnorshire Museum is recognised as one of the country’s most significant tourism assets and brings substantial economic benefits to the town," added Councillor Jake Berriman, "Co-locating Llandrindod library with the museum means opening hours can be increased, encouraging more visitors to the area.
“It is a great opportunity to create a new cultural space in the town whereby people can explore the rich history of Radnorshire, borrow a book, or look at some of our fascinating objects all under one roof.”