Disappointment has been voiced after plans to build an extension to Yr Hafod day centre in Cardigan have been put on hold.
Elderly users of the day centre have been sharing space with clients from the now-demolished Canolfan Meugan centre for people with learning disabilities.
When plans for a new Canolfan Meugan were scrapped 18 months ago, the county council said it would look at building an extension to house the extra numbers.
But local county councillors, who attended a meeting this week, were told that was now not going ahead due to financial pressures. Instead the existing space will be utilised.
"It is very disappointing," said Cllr Mark Cole.
The two services are getting along. Day centre numbers are rising but Canolfan Meugan numbers are staying still. However any rise in numbers will mean that there is less room," he said.
He added discussions were in the early stages.