"It is a great day in Chapel Hill," said Chancellor James Moeser. "Students and faculty can now board without having to use change, tickets or passes."
The ceremony, which took place near the Bell Tower, was to congratulate the members of the community who helped achieve the new system, which began Jan. 2, and to promote increased ridership.
The fare-free system, which is a collaborative effort between Chapel Hill, Carrboro and UNC, gained 40 percent of its total funding from the University after an overwhelming vote by students last February to increase their student fees.
Moeser gave special credit to the students' role in creating a transit system that will serve as a model for how public transportation can and should work.
Moeser also credited the Chapel Hill and Carrboro governments for developing a bus system that has extended hours, 11 additional buses and several new routes to service popular stops.
Chapel Hill Mayor Kevin Foy and Carrboro Board of Aldermen member Alex Zaffron spoke about the benefits of working together with the University to promote public transportation.
"We have a common vision," Foy said.
"Making (the system) fare free is making it an alternative that we can choose in all sorts of situations."
Zaffron agreed, saying that he considers the new bus system a "step towards automobile independence."