The Swedish mental health system has undergone rapid, if uneven change, since the early 1970s. Following a policy of sectorisation and mental hospital closure, there has emerged a new and more 'open' psychiatry. The expansion of community services has particularly benefited psychologists, while it has produced clashes of perspective as to the orientation of services. This paper explores the nature of these changes and the conflicts between psychiatry and psychology, and it points to the consequences of sectorisation for long term users of services.