In the 1990s, the Philippine Government worked to close Smokey Mountain as a dumpsite and by 2001 had moved the informal settlers living in the area into temporary housing. Most of the smoldering 20-hectare dumpsite was bulldozed and five-story blocks were built for residents of the area. But with the dump gone, many lost their main source of income – scavenging.
To help residents in the area earn a living, a cooperative was formed. After years of struggling with management and financial problems, the cooperative began to improve in the 2000s. With a grant from ADB's Poverty and Environment Fund, the cooperative began to focus on modern recycling as a replacement for scavenging.