ZAWIYAH, Libya - Libyan rebels hoisted their flag in the center of this town near the capital on Sunday after the most dramatic advance in months cut off Muammar Gadhafi's capital from its main link to the outside world.

The swift rebel advance on the town of Zawiyah, about 50 kilometers west of Tripoli, will deal a psychological blow to Gadhafi's supporters and also cuts the coastal highway to Tunisia which keeps the capital supplied with food and fuel.

But there was no sign Tripoli was under immediate threat from a rebel attack: Heavily-armed pro-Gadhafi forces still lie between Zawiyah and the capital.