The study was based on concerns about the condition of traditional market in Sleman which some traders are addicted to moneylenders and middlemen. This study aims to find solutions to various problems in traditional markets by building a model of the traditional market management based on market cooperative. In that regard, this study aims to seek constitutional basis for the model, as well as to explore the conditions and problems with learning management market. The formulation of the model in this study therefore constructed using participatory action research approach, where the model has been prepared for the purposes of the expected changes and carried out together with the market traders in the research sites. The model is a combination of constitutional interpretation and data mining in the field through in-depth interviews. The validation of the model are four times Focus Group Discussion, an open seminar, and once discussion with experts. This research has found that the management increasingly involves major role traders will be better off in terms of cleanliness, order, finance, social participation, unity, progress, and prosperity of the traders. Therefore, this research has been to build a model of market management-based on market cooperative, where the market is collectively managed by the cooperative in partnership with local governments, where dimensions of market management includes intellectual dimension that is indicated by the presence of the market school and media, institutional dimension indicated by the presence of deliberation, social security, networking, and secure local social and cultural values.