Protesters said the encampment was too time-consuming and efforts could be focused in better ways.
What those ways will be have yet to be determined and organizers asked attendees Tuesday for ideas.
They have been occupying the Peace and Justice Plaza on Franklin Street since early October.
In addition to tents, occupiers had set up a library and cafeteria area.
The majority of Tuesday afternoon was spent cleaning, packing up, and going home.
However, organizers said the tents coming down did not mean the movement was over.
"We are sadly collapsing our encampment but that does not mean we are going away," said Amanda Ashley.
"Occupy Chapel Hill-Carrboro still occupies the Peace and Justice Plaza," she said.
All that remains on the plaza is a lone tent set-up by a protester who was holding strong.
The pack up was planned before Monday's march to Chapel Hill's Town Hall in response to the town manager's endorsement of police brandishing assault rifles when confronting protesting anarchists who occupied the Yates building on Franklin Street.
Occupy members have maintained that the protests were separate from each other albeit with overlapping members participating in both.
The physical end of Chapel Hill's occupation of the town's Peace and Justice Plaza comes two months after protesters were evicted from Zuccotti Park in New York City, the inception of the Occupy movement.
What started as an Occupy Wall street concept went national and now global with similar movements such as Occupy Nigeria and Occupy Russia going strong.