FOWEY will lose its Royal Mail sorting office, with the service transferred to St Austell in the coming months, the company has confirmed.
The Post Office has stated, however, that residents will not have to drive to St Austell to collect any undelivered mail, as had been feared.
It is understood the six people employed at the sorting office will transfer to St Austell and are not under any threat of redundancy.
The news comes as Fowey's main post office prepares to move from Custom House Hill to the mini-market in Fore Street on May 1.
That move has been welcomed in the town, with the new counter being open longer.
Fowey's deputy mayor Anne Boosey said: "I'm very pleased Fowey is retaining a post office in the town.
"It's almost essential to have this service in the centre of Fowey, not only for the residents but for all our visitors."
As part of the switch the layout will change to a new 'local'-style open-plan branch and convenience store.
Under the new guise customers can enjoy seeing the opening times extended weekly by 37 hours per week across seven days.
Tony Jones, the Post Office's regional manager responsible for Wales and the West of England, said: "We understand how important having a post office is to residents in Fowey and we are confident the local service will meet the needs of the community and secure services for the future."
The modernisation coming to Fowey's branch is happening countrywide in what is the largest investment programme in the history of the Post Office.
Around 6,000 post offices, roughly half the network, will convert to the new style.
"The investment marks a commitment to no more branch closure programmes," said Mr Jones.
Known as 'Post Office local', the new concept is to deliver services from an open- plan counter with Post Office products being available alongside retail transactions during shop opening hours, making Post Office services available during longer hours and offering customers greater convenience.
Opening hours at the new location will be 7am to 7pm Monday to Saturday and 7am to 6pm on Sunday.
Within the new premises customers will be able to use a wide range of Post Office services including automated banking, bill and budget payment schemes, Post Office card accounts, postal orders and postage for inland letters and packets (including signed-for and Special Delivery), inland parcels, international letters, small packets and printed papers.