Cornwall County Council says it is confirming its commitment to subsidising bus services in rural areas by helping pay for a new vehicle.
The authority has helped pay for a new 16-seater bus to operate the "Corlink" flexible route which runs in the north of the county.
Money for the £50,000 also come from the government's Rural Bus Challenge.
Council principal transport officer Stephen Nicholson said the bus was justified by the service's popularity.
Corlink, described as a cross between a taxi and a bus, allows passengers to phone a call centre and book the bus up to an hour before their journey.
The service, which was established in 2002, runs from Bodmin to Camelford and links into the main routes around Cornwall and can also deliver passengers door to door.