The two actors became close friends when they worked together on the classic sitcom, which first aired on BBC One in 1973.
Bill, who played Compo, died in 1999 at the age of 85, and it was always his wish to be buried in St John’s Church graveyard in the Yorkshire Dales town of Holmfirth, where the series was filmed.
Following the death of his friend, Peter said: “He pointed down the hill and said, ‘That’s where I want to be buried’.”
Following his funeral, Peter - who played mild-mannered Clegg from 1973 until 2010 - said he wanted to be buried next to his co-star.
The actor, who also provided the voice of Wallace in ‘Wallace And Gromit’, died in June last year at the age of 96, and his wish was carried out.
Local greengrocer Alan Bray and a friend of Bill’s who arranged his funeral, said: “Peter wanted to be by the side of his friend even though they were both Londoners.
“It is a very nice end and touching tribute to Last of the Summer Wine that they are together again at last in the beautiful countryside they loved.”