The field of municipal waste management is a crucial and long-term problem in Greece. However, due to the current difficult socioeconomic situation, the need for dealing with this issue is even more important. Waste prevention and selection at the source, as shown in the numerous examples of its applications, are effective methods which, combined with the participation of citizens and state support, can produce substantial results. Some efforts have already begun by a number of Municipalities and cooperative foundations. In this study, the problem of municipal solid waste management in Greece is presented and, more specifically, the existing waste management system in the Municipality of Souli is examined. Moreover, the method of source separation recycling is thoroughly examined, specializing in the case of the study area. Finally, an economic evaluation and comparison between the proposed and existing waste management system is attempted, which proves that source separation recycling could be a successful alternative solution for the Μunicipality of Souli.