Ex-serviceman Arthur Utley, who took part in the Normandy landings, was given the honour of running the standard up the flagpole above Willenhall library which will be its permanent base.
Visitors from Willenhall’s twin town of Drancy in France were among special guests at the launch.
The red and blue flag, featuring padlocks and keys reflecting the town’s leading part in the lock manufacturing industry, was chosen from 68 entries in a competition organised by community website willenhallaywe.co.uk.
A panel of judges picked the best six and left it to the public to choose their favourite. The flag, designed by Adam Leonard, has since been officially registered with the Flag Institute.
A plaque on the front of the building recording the achievement was unveiled by Councillor Peter Smith, Mayor of Walsall. A flag was also presented to the French visitors.