Villagers from Westbury-sub-Mendip in Somerset can use the library around the clock, selecting books, DVDs and CDs. Users simply stock it with a book they have read, swapping it for one they have not.
"It's really taken off. The books are constantly changing," said parish councillor Bob Dolby.
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He added: "It is completely full at the moment with books. Anyone is free to come and take a book and leave one that you have already read.
"This facility has turned a piece of street furniture into a community service in constant use."
A resident dreamed up the idea when the village lost its phone box and mobile library in quick succession. Westbury-sub-Mendip Parish Council bought the phone box from BT in a national scheme for a token £1.
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