Goring-on-Thames, on the border of Oxfordshire and Berkshire, is now the best village in the South of England.
In July 09 it became the Oxfordshire winner and will now go up against five other villages in the national final.
As well winning the overall prize the village won prizes in the Environment and Communication categories.
The prize for this victory is a plaque and £2,000 which they plan to reinvest in the kind of community initiatives that won them the award.
Ann Hart, the chair of the parish council, said: "We had a terrific parade and tremendous community spirit which I think carried along the judges and it helped us through. I'm surprised we didn't win the community award as well."
BBC Oxford's Phil Mercer was on the original judging panel which awarded Goring the prize of Oxfordshire village of the year. He wasn't surprised it won this round: "There is a real commitment to eco-friendly activities like their hydro-electric scheme.
"At the same time there was an excellent attention to the smaller details like the map the village has that shows routes which have good wheelchair access. They had the big and the little ideas covered."
The judges that argued the case for Goring to be the Southern winner will now fight their corner with the judges from the five other regions. The eventual national champion will be named at the end of November.