JUNG residents believe they are community-minded people with a fighting spirit and a love of country living.

Resident David Arnott said it was this spirit that had the community vowing not to be significantly affected by an Australian Bureau of Statistics decision to downgrade the 'town' status of communities with fewer than 200 people.

Jung will now be classed as a gazetted locality.

Mr Arnott, who is unofficially known as the 'Jung mayor', said residents were disappointed by the change.

"It is a bit disappointing but if this is the worst thing we go through in a year it won't be too bad," he said.

"Speaking to some of the residents they are a bit 'bamboozled' as to the decision because it seems to have come out of the blue.

"I don't think anyone will move because of this but it might put people off from coming to Jung because it is no longer classed as a town.

"Funding would be another large concern for us because we are just getting some work done from Horsham Rural City Council."

Jung Recreation Reserve management committee president Terry O'Donnell said community members could rely on one another.

"Realistically, Jung offers lifestyle living with a little bit of land and separation from the centre of Horsham," he said.

"A benefit of being in a small community is that you can get back to nature so we can see some beautiful sunsets and the stars at night."

Mr O'Donnell said he was annoyed at the decision to downgrade Jung's status to a gazetted locality.

"It is an identifier for us and the first step of losing our identity was when we lost our postcode and were grouped in with other areas around Horsham," he said.

"Losing the township makes it feel as if you are going to lose your name altogether."

Resident Robert Adams, who moved from Melbourne three years ago, said he would pick the tranquillity of country living over the hustle and bustle of city life 'every day of the week'.

"What you are probably looking at here is a bit of security because people in the community look after each other," he said.

"It is a quiet rural town so you have little crime and you do not have the amount of traffic that runs up and down roads like in other places.

"The Country Fire Authority brigade is right in town, which is another protection so people know their houses are going to be safe if a fire breaks out."

* Are you part of a small community that has lost its 'town' status? We would love to hear your story. Comment below or email us at newsdesk@mailtimes.com.au.