This paper examines the psychiatric work villages in Israel, which have so far had little historiographic attention. In the 1950s and 1960s, four work villages were established for people with psychiatric disabilities. They were intended to create a long-term rehabilitative alternative to the common hospitalization practice. These villages were organized around employment in various branches of farming and also offered recreational and cultural activities to alleviate the patients' loneliness and to create a community life. The villages echoed central values of the new country: labour, manufacturing, cooperativity, and cultural and community life. I will discuss the similarities between the psychiatric work villages and earlier, mostly Western, psychiatric therapeutic models, such as moral treatment and the therapeutic community model.