Partly as a result of failing health, Vinnegar moved to Portland, Oregon, in 1986, where he became a central figure in the local jazz scene. Despite worsening heart and lung ailments which eventually required him to use oxygen even when playing, he continued to work until shortly before his death, and to record additional albums as a leader, including Walkin' The Basses (1992) and Integrity (1995).

Vinnegar was not only a seminal figure in the history of jazz and an influence on generations of musicians, but he was also a mentor, educator, and unflagging contributor to the musical life of his adopted community. Musicians visiting Portland would seek out his club dates and sit in with the master, and the Oregon Legislature honored his contribution to the cultural life of the state by designating 1 May as Leroy Vinnegar Day. He was installed as the first inductee into the Jazz Society of Oregon's Hall of Fame in 1998. Leroy Vinnegar died on August 2nd 1999 in Portland, Oregon. In 2002, in honor of his legacy, and the important role that jazz continues to play in the cultural life of the Pacific Northwest, Portland State University established The Leroy Vinnegar Jazz Institute.