The oldest building in the town is to become a library, Herefordshire council service hub and a wedding ceremony home.
Construction work on the listed building has begun and is due for completion in January 2012.
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Roger Phillips, Herefordshire Council's cabinet member for enterprise and culture, said: "At a time when many local authorities are having to close libraries due to government spending cuts, we remain fully committed to providing this service which is much valued by the local community.
"This project is a very important one for Ledbury which will not only restore this building but also ensure its sustainability into the future."
The council has submitted a bid to the the Heritage Lottery Fund to restore medieval parts of the building.
(GK/BMcC)
