Four subsidised bus services in Gloucestershire are being replaced by a Forest Community Transport service.
The service is operated by Forest-based voluntary organisation Lydney Dial A Ride in partnership with Gloucestershire County Council.
Many villages in the forest will see an improved service at a lower cost, claims the council.
It offers a direct service to Chepstow and Coleford where onward connections can be made to Gloucester. Short hop fares from village to village are also available.
Journeys cost £4 for a day return for adults (£2.50 single) and £1.50 return (£1 single) for youngsters, with under fives and concessionary bus pass holders travelling for free.
Councillor Chas Fellows, cabinet member for economy and environment, said the new service would operate like any other normal bus service.
"In rural areas particularly, there is not enough demand for a traditional timetabled service but there is still a need for public transport to help get around.
"We've listened to what local people have told us and we've worked hard to find a solution that fits.
"The council is committed to providing a successful public transport network. I hope that people will make the most of this new service and use it."
Meanwhile, a Community Transport Challenge Fund aims to improve links for people who live away from major transport routes in Buckinghamshire.
Organisations that worked together to introduce the fund included Transport for Buckinghamshire, Buckinghamshire Community Foundation and Community Impact Bucks.
Some 75 community transport schemes exist in the county, often run by a small team of volunteers.
The aim of the Community Transport Challenge is to support new and existing services in activities that help people get around.
Grants of up to £30,000 will be available to registered charities, village car schemes and social enterprises.
A total of £150,000 is available, to be split between the successful applicants. It can be used for either capital or revenue purposes.
Funded projects must either be completely new or herald a clearly different approach, said Peter Hardy, Buckinghamshire County Council Cabinet Member for Planning and Transportation.
"This excellent scheme gives local charities, social enterprises and parish groups the chance to come up with accessible transport solutions which meet the varied needs of their communities."
All applicants will be supported by Buckinghamshire Community Foundation and Community Impact Bucks, who will also take applicants through a health check.
The deadline for expressions of interest is October 1st 2012.