Village development that use community participation needs the commitment of all stakeholders. The process is a complicated matter and need innovative strategies. Previously, the Indonesian government believed that improving the well-being of people through financial capability is the primary indicator to help people get a better quality of life. Whereas economic factor as single approach leads to increase inequality in the village. Economic aspect as single domain approach could risk the environment because people tend to achieve economic prosperity. However, the development process in Panggungharjo Village showed a different situation. The village government used multitude aspect to develop their area. Environmental sustainability approach was the main factor in changing socio-cultural and economic aspects in Panggungharjo Village.
This study used a qualitative approach, by collecting data through in-depth interviews, focus group discussions, observation and literature studies. Total informants were 18 informants, using purposive and snowball sampling. The finding showed that empowerment through environmental domain became a catalyst toward change in socio-cultural and economic aspects. Starting from waste management, Panggungharjo Village could overcome their unmet needs. The existence of waste management enabling collaboration of stakeholders in some issues: environmental, education, health, spiritual and economic for the wellbeing of people in the village.