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Squatter settlements is defined as a residential area developed on a non-residential area according to the city masterplan, went through illegal procedures and had no permit from the legal authority. Resettlements (Relocation) Program is a housing policy aims to redistribute residents from squatter settlement to residential area planned in the city master plan. Community-based Housing Development (CBHD) is one of housing delivery system in Indonesia based on community empowerment, which is believed to have contributions to poverty alleviation in terms of increasing access to adequate land and housing, increasing infrastructure condition, housing affordability, and social development sustainability. Those purposes manifested in the betterment of the neighbourhood in the residential area. Kelurahan Pucangsawit Surakarta City, is a residential area located in the riverbank of Bengawan Solo River, one of twelve Kelurahan (approx. 1.571 houses) in Surakarta potentially affected by annual flood. Relocation Program was conducted in 2007 and relocated 268 families to the residential area in Kelurahan Mojosongo in northern part of Surakarta. The research aimed to analyze the contributions of Relocation Program to environment improvement as an effort for poverty alleviation. Methodology used in this research was deductive approach using quantitative data from the questionnaire to the beneficiaries of the program. The result of the study shows that relocation program has contributed to environment improvement mainly in terms of increasing water supply, better access to sanitation, better housing condition and land status clarity.
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