The North Otago RSA has gone into liquidation.
Members voted to wind up the incorporated society at a special meeting on Thursday night.
All members will have to apply for a transfer to another RSA, the closest now being Waitaki or Palmerston.
RSA Otago-Southland president David Geddes said there was a sense of sadness in the community yesterday.
''Some people were quite devastated. It is a very sad time and people kind of feel they have let down those who have gone before,'' Mr Geddes said.
He said the total amount of debt was still being calculated but there was no way around it.
''They looked at ways and means of being able to pay that with the money that they have available, but that was not going to prove to be an easy task,'' he said.
In August last year, the North Otago RSA decided to trade its way out of financial difficulties, and an action plan was outlined at a meeting of more than 120 members.
''It didn't work out in the end and I think the key factor in that was people sometimes put their hands up and say we'll be there, we want it to continue, but at the end of the day if they don't actually support it, if they don't go along on a regular basis and participate, it'll make no difference,'' he said.
The Returned Soldiers' Association, as it was then, was founded after World War I, offering support for returned servicemen and women and their families.
Once, the RSA clubrooms were the heart of every New Zealand community. Now, many are struggling.
''It's a national trend for all clubs that people don't use them as much these days,'' he said.
''If people don't use it, you eventually lose it.''
Despite the financial difficulties, the core values of the RSA, welfare and remembrance, were still strong in Oamaru, he said.
There was a lot of passion and enthusiasm for those services to continue and much of that came from the younger members who were present, he said.
''Our job now, once the liquidation process gets under way, is to look at re-establishing an RSA presence [in Oamaru],'' he said.
The assets, such as office equipment, tables and chairs, will be sold by the liquidator to settle at least part of the outstanding debts.
Waitaki Mayor Gary Kircher said the council would offer support to ensure welfare and remembrance functions continued.
''This is a sad day in North Otago, as we watch the current organisation disappear, but I believe the key functions will continue and events such as Anzac Day and the various centenaries of World War 1 events will still be appropriately commemorated in our area,'' he said.
''It is important that we remember those who fought for us and our freedom, and we will.''
The building was likely to be taken over by the council, on behalf of the community.
''We will be talking with users to do our best to give assurances over their future use,'' he said.
''This is particularly important for the bowling club and the snooker and billiards club situated downstairs.''
The casual users should be able to continue using the building for at least the short term and it was hoped that RSA memorabilia could remain on display.
North Otago RSA past president Ian McKay said he was ''very disappointed''.
''We were hoping to keep those doors open, try to save it, and we saved it for as long as we could,'' he said.
Mr McKay stepped down as president on September 12.
''Both my wife and I had to move on because of health reasons ... and nobody stood up and took it on,'' he said.
''We put a lot of work in, a lot of volunteers helped us, a lot of businesses helped us. I'm going to go around and thank them very much for what they did because without their support, we couldn't have carried on as long as we did - we owe the public something for what they've done.''
