Because of the wintry weather, the school's final assembly was moved into one of the classrooms.
More than 100 people attended the assembly, at which they heard speeches, watched presentations and enjoyed two musical items from the school's final eight pupils.
Board of trustees chairman Andrew Tripp has two children attending the school.
Mr Tripp said the board had tried to encourage more families to move to the area.
However, in the end it was in the best interests of all concerned that the school be closed.
‘‘It wasn't an easy decision,'' Mr Tripp said. ‘‘But it was in the best interests of the children, although they probably don't think so.''
Clutha-Southland MP Bill English said rural communities had experienced many changes in the past 20 years.
‘‘With the teacher's undivided attention these kids have had, they will do well,'' Mr English said.
‘‘They have come away with something special.''
Kaiwera School principal Gail Mullon said it had been a privilege to serve the children and the community for the past four years.
‘‘When I finish the paperwork and close the door for the last time, the school will hold a special place in my heart,'' Mrs Mullon said.
The school's oldest former pupil, Wallace Herron, and its youngest pupil, Alisha Tripp, (5) rang the school bell for the final time.