Joe Walcott and George Mason both gave many years of service to the council and significantly both served with the RAF at Brize Norton.
Council Leader James Mills made the announcement at a full Council meeting last Wednesday, having consulted with the former councillors’ families.
The names will be used on suitable streets in forthcoming developments.
Mr Walcott was elected to the District Council in 1995 and was Chairman between 2002 and 2006. He was awarded the MBE the same year.
He stood down in March 2013 and died in 2018.
Prior to that he had 30 years’ service with the RAF. He was also a former mayor of Carterton and served on the Town Council.
Mr Mason originally came to England as one of 500 hopeful settlers from Jamaica on the Empire Windrush ship in June 1948 and was captured on film by Pathe News at the time.
As well as serving in the RAF, he was also Deputy Mayor of Carterton and was a district councillor between 1999 and 2010. He died in 2017.
Cllr Mills said: “Joe and George both served their country, West Oxfordshire and Carterton with distinction so it seems fitting we recognise their achievements with the naming of the streets.
“The significant contribution of these individuals also reminds us of the large and ongoing commitment of the RAF and their contribution to helping in the fight against Covid-19 as we celebrate Armed Forces Day.”