This paper examines some major institutional factors determining the possibilities for successful waste reduction policies. In a multiple case study, four geographically defined cases of markets for municipal solid waste are compared on four core elements in the sector structure. It shows that the structure is shaping institutional capacity for achieving waste reduction. This capacity is determined mainly by combined structural elements. Privatisation, for example, should definitely not be seen as the only effective solution. Only under very specific conditions (unbundling and separation of functions) can privatisation have positive results. On the other hand, when authorities act as regulators, they should not have interests in waste collection and disposal. They should stick to either regulation, collection or disposal. Copyright Royal Dutch Geographical Society 2001.