It was officially opened by Margaret Phillips, 79, who was born in nearby Upperton and has lived in Tillington all her life.
She went to Tillington School leaving at 15 to work as an apprentice hairdresser in Midhurst.
She moved to The Harrows at Tillington with her family in 1960 just across the road from the bus stop and has been a regular user of the bus service all her life.
Around 25 villagers turned out to inspect the new shelter and welcome its arrival.
One of them, Gerald Gresham-Cooke told the Observer: “We are all delighted with our 21st century attractive new bus shelter which is made of wood, water proofed and has windows so you can see the bus coming.”
He said villagers had been asking for a new shelter for several years.
“The old one was a really old post war metal thing which had been there for decades and which did not look at all right in the rural setting.”
The shelter was funded by Tillington Parish Council and organised by its vice chairman Bob Sneller. It was supported by a grant from West Sussex County Council.
Villagers celebrated with a community tea organised by parish clerk Jean Huggett in Tillington Village Hall.
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