The town has no tree or outside lights, and the decorations at the Forest Shopping Centre were funded and organised by the centre's traders.
Whitehill Town Council clerk Trish Bell said: "We have never had the budget to put up decorations - certainly not in the two and a half years that I've been here.
"The town council does make a contribution to the Forest Traders Assoc-iation that goes towards their decorations but, as a council, we have not previously considered it.
"Money for Christmas decorations has to come out of council tax and our councillors are always very mindful of how they're spending residents' mon-ey."
In nearby Alton £15,000 of Christ-mas decorations were funded by the town council.
Now Whitehill town councillors Adam Carew and Jonathan Heard have put a motion to the council which, if approved, could see the situation change.
The motion states: "This council recognises that Christmas is an important time of year for the people of Whitehill and Bordon - for our residents, churches, schools, community groups and traders.
"It recognises the difficulties the town faces in having a split town centre and shops located in a variety of areas - the privately owned Forest Shopping Centre, Chalet Hill and along the A325 in Whitehill and Bordon.
"It therefore proposes that: Whitehill Town Council works with local businesses, the town partnership and the Ministry of Defence to provide Christmas lights and a public Christmas tree in a prominent position within the town.
"That it considers approaching East Hampshire District Council, the Bordon Charity and other grant-making bodies for match funding, and the Forestry Commission for possible donation of a Christmas tree.
"That the lights and tree lights are officially switched on in a public opening ceremony by the town mayor and that this ceremony becomes an annual event."
It is possible that, if the motion is approved by the town council, work to secure a budget will be completed in time for next Christmas.
However, Christmas in Whitehill and Bordon will not go unnoticed this year, thanks to a one-off event organised by East Hampshire District Council.
Whitehill and Bordon is set to be transformed into a festive wonderland - with reindeer, a brass band and a choir - on Saturday, December 13.
The event, known as I'm Dreaming of a White-hill Christmas, will be opened by the Mayor of Bordon Dr Bill Wain at 11am.
The Whitehill and Bordon Town Partnership and local retailers have revealed that the event line-up will include the Liss Brass Band and the Alton Community Choir, who will provide some yuletide music.
And Mother Christmas will be there with her reindeer and some elves to help her entertain the children.
The town's library, church and the Forest Centre will supply refreshments and the shops will join in the fun.
There will also be stalls for children with pedal carts, dance mats and giant board games.
There will also be a stall run by the Deadwater Valley Trust, where there will be the opportunity for children to get creative and also some craft items for sale.
Entertainment will be provided by the players of The Phoenix Theatre, who will be in costume.
Gerry Thorne, the town improvement manager, said: "We haven't ever had the opportunity to put up decorations in the town - it's never been done before.
"In other towns, bigger grant bodies are at work, such as the Rotary and the Chamber of Commerce.
"But with the Dreaming of a White-hill Christmas, we can show that Bordon wants to celebrate Christmas as much as any town.
"Hopefully, we will be able to build upon the event and expand it to include lights and a tree in the coming years.
"We should be able to light up like every other town.
"We hope that this event will be the start of something that will grow and grow and really help to spread Christ-mas cheer.
"This will be a great day with something for everyone.
"Organising the event has been very involved and complicated, so establishing that there is a want for decorations and events like this within the town is very important.
"We need the support of local residents to get the event off the ground and to ensure that it can become an annual event."
It is hoped that the Forest Comm-unity Association will add to the fun by running a craft fair at the community centre.
Anyone who would like to have a stall there should call 01420 488978.
Ian Dowdle, East Hampshire District Council portfolio-holder for Whitehill-Bordon, said: "This is a great idea and will hopefully bring people into the town.
"The festive music will be wonderful and I'm sure youngsters will enjoy meeting some real reindeer."