The PCT says it will create a new, modern community hospital and health centre on Devizes' Green Lane site.
The trust says the new hospital will be a "centre of excellence" but campaigners say the lack of some services such as a 24-hour minor injury unit, for example, will be catastrophic.
The trust plans for the new hospital in Devizes to open at the end of 2005.
The existing hospital site will be used for housing and the Family Health Centre site in New Park Street will also be sold off to fund the new hospital. The town's GP practices will be invited to move alongside the new hospital.
At the new hospital the trust proposes to have 15 beds in a wing, alongside a private nursing home, for patients requiring up to six weeks intensive rehabilitation.
There are also plans to provide similar intermediate care in people's homes which, the the trust says, will reduce the need for hospital beds.
Minor injuries will be treated by nurses during surgery opening hours and the Green Lane site will provide a base for a primary care emergency centre out of hours.
It is said the out-patient facilities will include occupational therapy, physiotherapy, X-ray, and paediatric services.
A pharmacy is also planned but a number of services are not guaranteed.
These are maternity, specialist out-patient clinics, a dental centre, a diagnostic and day surgery centre and a drug and alcohol detox unit.
In addition the trust plans to close 20 beds at Devizes Hospital this October and treat people in their own homes by expanding intermediate services.
The current 24-hour minor injuries unit is due to cut its hours to 8am to 10pm in October.
Campaigners who have fought for a new hospital for Devizes for 20 years believe they are being fobbed off now.
Devizes Mayor Paula Winchcombe, who is chairman of the pressure group Devizes Action To Save Our Hospital, said: "As the group representing the interests of the town of Devizes and its surrounding area DASH still has grave doubts that the PCT will continue to provide what we have today, let alone enhance it to meet the needs of our growing community."
Tony Duck, the chairman of Devizes Guardians, said: "The solutions proposed by the PCT fail to address the needs or the comfort of either the young or the old in this growing community. Of particular concern is the failure to provide 24 hour minor injuries cover."
Unison, the union which represents some nurses and admin staff, is planning a march in Devizes on June 26.
It does not believe what the trust is proposing is a hospital and senior steward Roger Davey says he believes there will be redundancies.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article