The town is the first in the UK to be officially welcome walkers and organsiers hope it will be a model for other towns in Briatain.
Calderdale Council has worked with members of Hebden Bridge Walkers' Action Group to repair footpaths, create new facilities for walkers and try to improve transport links into the town.
Chairman of the Ramblers' Association Kate Ashbrook spoke at the Walkers' Day launch at Riverside Junior and Infant School, Hebden Bridge.
She said: "The Ramblers' Association is delighted to see Hebden Bridge designated as the first town to welcome walkers.
"We hope this initiative will encourage as many people as possible to go for a walk and encourage the local authorities to get their paths in good order."
The festival featured workshops, guided walks and stalls.
A campaign for the town's new status was started in September last year by members of the Hebden Bridge Walkers' Action Group.
Richard Peters, group treasurer, said: "The town has always been promoted for its shops and culture and often you find that the walking side of it is ignored.
"There are some great places to walk here and we just wanted everyone to to recognise that.
"Last year we launched a number of initiatives and with the help of the council we have been able to set them up.
"It really is thanks to the enthusiasm of others that we have been able to get here. Next year we hope to launch it in Mytholmroyd."
Three new waymarked trails around the town were also unveiled.