Katoomba has lost its only return and earn collection point for recycling bottles and cans, leaving residents calling for more to be set up.
The Victoria Street shop which had been part of the scheme, offering a 10 cent refund for each recycled container, is no longer offering the service.
This means three of the Mountains largest villages - Katoomba, Springwood and Glenbrook - are without any recycling collection points.
There are five return and earn centres in the Mountains: Local businesses offer the service in Blaxland, Leura and Blackheath.
Wentworth Falls Country Club and Winmalee shopping centre carpark have the only reverse vending machines in the Mountains.
Residents, led by spokeswoman Meredith Brownhill, have written to the mayor, Mark Greenhill, and the environment minister, Matt Kean, asking them to consider installing reverse vending machines in all the Mountains villages.
Residents have also asked for an automated depot with staff to receive quantities of over 500 containers, for which a cash refund is paid.
Ms Brownhill said local MP, Trish Doyle, has also written to Mr Kean asking if more collection points will be implemented.
Ms Brownhill said council told her there were no recycling bins in public areas because of concerns about contamination.
She said scout groups or other organisations could be making some money by targeting lookouts or other areas where tourists picnic and leave their recyclables in general rubbish bins.
At many of the Mountains festivals, rubbish rooms, which separate organic and recyclable garbage, often have a separate bin for 10c cans and bottles which goes to fund koala protection.
Greens Councillor, Brent Hoare, said: "It is clear to me that there is a substantial demand for return and earn beverage container deposit scheme facilities. Unfortunately, in spite of significant efforts by all those involved in rolling out the scheme, suitable arrangements have yet to be delivered in important parts of our city.
"I believe it is important for council to refocus attention on the need to provide adequate solutions to enable people to easily return their containers."
Blue Mountains Conservation Society spokeswoman, Clare Power, said: "The Blue Mountains deserves a fully implemented return and earn service because of the importance of our natural environment. We must prevent as much litter as possible from entering our water drains and creeks and bushland.
"It is essential to have litter free roadsides. The reverse vending machine collection points need to be centrally located for the convenience of all residents and visitors."
The return and earn program has shown that having readily accessible collection points for cans, bottles, cartons and juice bottles that earn a refund do increase participation in recycling.
Without any public recycling yellow bins in village streets, parks and tourist locations, containers are going to landfill as waste.
"By reducing waste and saving resources with recycling, our community can actively engage in sustainable living as well as caring for our World Heritage area," said Ms Power. "The society hopes that Blue Mountains council and the state government can work together to improve recycling in the Mountains."
