Former beauty queen Kaiane Lopez, 30 was named mayor if the British territory.
Lopez became Gibraltar's first-ever Miss World when she was crowned in Johannesburg at the 2009 pageant.
The patriotic former beauty queen said: "I am proud to be British.
"Gibraltar is British and always will be. Why would we ever want to change our flag?" She added.
Ms Lopez is the youngest mayor in the territory's history, and the third woman to take on the role.
International media has described Ms Lopez as "the most beautiful mayor in the world".
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