Councillor Leon Murray, who had represented Hadley & Leegomery on the council since being elected in 2011, was described as a man who was "dedicated" to his community.
Councillor Murray, who was 84, had been mayor of the borough twice, a magistrate, a deputy lieutenant, a vice president of British Methodism, and had worked with numerous local charities and organisations.
He was born in Jamaica and moved to Telford in 1961, married his wife Barbara and had two daughters, Christine and Rachel.
Councillor Murray was instrumental in tackling racial discrimination, including writing the book Being Black in Britain, and was recognised in 2007 for his efforts in promoting community relations by the then Prince of Wales with an MBE.
Telford & Wrekin Council said the flag at its head offices at Addenbrooke House would be flown at half mast for the week as a mark of respect.
Councillor Shaun Davies, leader of Telford & Wrekin Council, said: “Leon was simply an inspirational person and my thoughts are with Barbara, Christine and Rachel at this very sad time.
“There are few people who have been able to achieve what Leon has during his life. He was a person who was truly dedicated to his faith, his family and to community life. We will miss him greatly.”