Allenton Pharmacy was one of three in Ashburton set to be affected.
However, about 700 people signed a petition in the pharmacy to keep its service, and New Zealand Post has listened.
Pharmacy co-owner Carolyn Cameron was contacted last week to say the service would be retained at Allenton.
"We are delighted and we are very grateful for the community support,’’ she said.
"We really appreciate the community rallying around us and supporting the service for Allenton really.
"It’s just marvellous.’’
Rangitata MP James Meager called the decision an example of "the power community has by rallying together", although he was disappointed two other sites in Ashburton would close.
"Local residents have voiced their concerns. They importantly highlighted the adverse impact this closure would have had on older members of the community, who are reliant on the store’s accessibility to provide them with essential services.
"Their work included a petition of nearly 700 handwritten signatures and messages, which my office accepted and sent to NZ Post on their behalf.
"NZ Post have since informed me it has decided to keep Allenton’s doors open after hearing the community’s concerns, engaged with key local stakeholders, and re-examined its own data and analysis.
"This is a win for our town, and everyone who worked hard to save the store’s postal services.
"I thank Gail and Carolyn from Allenton Pharmacy for their advocacy, alongside every Ashburton resident who made their voice heard throughout this process.
"I’d also like to acknowledge NZ Post for hearing the community’s concerns and making this change.’’
