This article addresses a largely neglected area of study in sociology, namely the consecration of people in elite communities. Through the notion of 'consecrating exclusion', I explore how Sweden's foremost elite community Djursholm was founded in 1889, and how its aura and character as an exclusive neighbourhood are maintained today. Data come from historical material and a five-year ethnographic study consisting of field observations, interviews and archival material. I analyse how Djursholm was created as a sanctuary for the economic elite in Sweden and that its foremost purpose has been to socially elevate its residents, making them appear honourable and morally superior. I report how the community has defended its borders by various practices of exclusion, and how Djursholm aims to present itself as a role-model, a 'shining city upon a hill' which is critical to its social standing and status. The study contributes to the sociology of elites in three ways: (a) theoretically through the notion of 'consecrating exclusion', by synthesizing ideas on social and moral distinction with ideas on symbolic boundaries and moral hierarchies; (b) empirically by presenting in-depth qualitative data on the construction and maintenance of a peculiar elite community, noting that few studies have reported data from a neighbourhood designated as 'elite' from the start; and (c) methodologically by drawing on a mix of methods including historical documents, interviews and participant observation in order to examine both historical and contemporary aspects of 'consecrating exclusion'.