Dozens of people turned out for the rally, with many of them carrying "Keep Dix on the Hill" signs.
The protesters say the hospital plays a key role in treating those with mental illness in the capital.
Wake County Sheriff Donnie Harrison is among those who supports keeping Dix open.
"I don't understand moving it from Wake County," Harrison said. "It's got to be some politics involved here and I'm here to oppose moving it."
The sheriff says moving the facility out of the county would end up being more expensive for taxpayers in the end.
Dorothea Dix Hospital is set to stop admitting patients in December and would eventually transfer the remaining patients to other state hospitals.
The reason for the move is money. The state says it simply does not have the funds to keep the hospital open.
In the meantime, protestors are vowing to keep fighting for the facility.
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