The parish council will take over a number of assets and amenities from Conservative led Wiltshire Council once the detail has been agreed following the decision.
Richard Clewer, cabinet member for corporate services, said: "Pewsey has great amenities, a very strong sense of community and is an attractive place to live and work.
"This is our fourth transfer of assets and services to local communities in Wiltshire. We will continue to support Pewsey as the village takes on this important role and provides services and assets which benefit from local delivery into the future."
Curly Haskell, Chairman of Pewsey Parish Council said: "We do not underestimate the scale of the task and the responsibility we have now taken on, on behalf of the Pewsey community. The parish council and the SDAT have worked hard to get us to this point and I sincerely thank them all for their support. However, this is not the end, but rather, the start of the transition process.
"I look forward to our continued collaboration and to developing a strong partnership with the streetscene team, in order to ensure a successful outcome for us all."
The transfer package includes grounds maintenance, streetscene services, tree maintenance away from the public highways and maintaining play areas. There will also be a freehold transfer of North Street Car Park both East and West and a number of open spaces and land.
In addition, approximately £251,000 of section 106 money from local developers will transfer to Pewsey Parish Council.