OBJECTIVES: In 2006 a law for the economical use of medications was introduced into the Hungarian legislation. This law – among others – facilitated the foundation of new pharmacies. The aim of our study is to analyse the effect of that legislation on the annual turnover of community pharmacies. METHODS: Data were derived from the pharmaceutical database of the Hungarian Health Insurance Fund Administration (OEP), the only health care financing agency in Hungary. We analysed the 5 years period between 2006-2010. The main indicator of our analyses was the annual turnover of pharmacies calculated on health insurance reimbursement according to the number of population of different settlements. RESULTS: The average annual turnover – calculated on health insurance reimbursement – of a community pharmacy was 176.8 million Hungarian Forint (HUF) or 669011 EUR in 2006 with significant differences according to the size of population. Pharmacies located in small cities had a much lower average annual turnover (0-499 population: 105.6 million HUF; 500-999: 41.9 million HUF; 1000-1999: 63.2 million HUF), while the turnover of pharmacies located in bigger cities, was significantly higher (10000-49999 population: 217.6 million HUF; 50000-99999: 231.9 million HUF; over 100000: 241.6 million HUF). The average annual turnover of a community pharmacy was 135.4 million Hungarian Forint (HUF) or 491627 EUR in 2010, i.e. 76.6 % of 2006’s turnover. Between 2006 and 2010, the annual turnover of pharmacies in small villages (population 0-1999) varied between 86.1-103.7 % while those of big cities (population over 10000) changed to 66.9-76.5 %. CONCLUSIONS: The annual turnover of pharmacies in small villages was significantly lower than those of big towns during the study period 2006-2010. However, the annual turnover of small villages’ pharmacies decreased moderately compared to pharmacies located in bigger towns because new pharmacies were established in bigger towns.