With growing consciousness of environmental degradation, recycling is encouraged everywhere. But there are poor communities who recycle for survival and thereby contribute to environmental conservation. This study is about one such poor community living in the squatter settlement of Kongkear Phos, on the outskirts of Phnom Penh, the capital of Cambodia. There are many garment factories adjacent to this settlement. The study investigates the potential of this poor community to reuse factory waste to improve its income and living conditions, and foster overall development. The settlement began in 1993. Since 1995 its people are collecting scrap from the factories to produce T-shirts, trousers, hats and bags to sell in the market. This informal sector activity has grown overtime and enabled residents to earn income and support themselves. The recycling activities of these people have also reduced the volume of waste in the city, saved natural resources, prolonged the life of sanitary landfills and reduced environmental pollution. This study should be of interest to professionals, students, researchers or anyone interested in utilizing industrial waste for recycling.