Wandsworth Council and the borough's mental health trust have vowed to improve services in the borough following the signing of a new partnership between the two authorities.
Representatives from South West London and St George’s Mental Health NHS Trust (SWLSTG) and the council signed an improved Section 75 Agreement at the local authority's offices on December 20.
Both organisations believe the deal signing will also mean better value for money for Wandsworth taxpayers.
David Bradley, chief executive of the mental health trust, said: "One in four people will suffer from mental illness at some point in their life and this agreement represents a real step forward for improving mental health care in the community.
"By working with in partnership with Wandsworth Council we’re making sure that patients receive a service which is much more tailored to their needs."
The agreement means adult mental health services will be provided in partnership by the council and the trust who will work together to ensure service users’ needs are met in order to deliver the "highest standards of care and value-for-money" possible.
The core aims of the partnership are to improve the mental health of service users while encouraging employees’ professional development.
The two parties hope it will mean less bureaucracy and duplication, increased efficiency and more innovation in the provision of services.
Councillor Jim Maddan, Wandsworth Council cabinet member for adult care and health, said: "This is about improving the way the council works with the NHS to care for local people with mental health issues.
"The aim is to improve services for our community and make better use of public funds."