Abstract For a long time in our society there has been a minority group, e.g. individual recycle material collectors, curio collectors, and recycle businessmen, living on collection and trading of recycle material. Particularly in recent years with the promotion champagne of environmental protection policy, there is an increasing trend in the number of people involved in this business. The society reacts both positively and negatively about such recycling business. The positive view comes from the environmental protection institution¡¦s affirmation about the reuse of recycled material, whereas the negative view is concerned about the messy environment created by the recycling method and process. It is an undisputable fact that their existence in residential and commercial area is violating the regulations of urban development plan. This paper discovers there are differences in opinion between the EPA authority and the Urban Development authority in the applicable regulations about owners of recycle business moving into industrial estate while investigating it¡¦s legality from the position of public sector. The methods of managing existing recycle business among the different local governments are also quite different. For instance, while the central EPA authority frequently prepares budgets in an effort to improve the image of the recycle business, the local urban development bureaus prescribe them for the reason of violating the regulations of urban development plan, such as piling up of wastes, etc. On the other hand, looking at the value of its existence from the economic benefit angle shows that the recycled waste cleared by the recycling business is 2.5 times more efficient than that of the public sector. Such economic benefit is clearly visible. Though this study covers only the Kaohsiung metropolitan area, the problem of these under sized waste recyclers is no doubt a nationwide issue. It is hoped that the investigation and analysis of this paper in the problems arise from the recycling business could benefit the business owners in economy of scale and profit analysis as well as the public sectors as a reference in the design of related laws and regulations.