South Somerset Primary Care Trust (SSPCT) has received the highest 'Three Star' rating in the government's NHS Performance Ratings.
The new Trust has achieved exceptional performance in all nine of the government's key performance indicators.
SSPCT, responsible for funding local health services for 150,000 residents, has an annual budget of over £133 million to manage community health services and fund hospital treatment.
SSPCT chief executive Virginia Pearson said: "This outstanding performance rating has been made possible by the hard work of all our staff and colleagues within primary care and the East Somerset NHS Trust, Taunton and Somerset NHS Trust and the Somerset Partnership NHS and Social Care Trust."
The trust's chairman, Keith Pearson, said: "As a new primary care trust we have faced a great many challenges this year, not only establishing a new organisation, but managing the many pressures of our services through sound financial management.
"I would like to pay tribute to all our staff in this vote of confidence in our trust."
As part of the NHS National Plan, published in July 2000, tough performance targets were set for NHS hospitals and PCTs.
This year an independent regulator of NHS performance, The Commission for Health Improvement, has been responsible for producing the indicators.
* There is a Department of Health website providing information about your local hospital, ambulance, mental health and primary care trust performance ratings at: http://www.doh">www.doh. gov.uk/performanceratings/2003