Exposure to contaminants of waste disposal sites potentially has negative health effects on population living in close vicinity. However, the impact to the community in terms of illness and health care costs have not been documented in Colombia.To determine the effects of an open waste disposal site on the occurrence of respiratory symptoms in children 1-5 year old and on associated household care costs in Cali, Colombia.A cohort of 863 1-5 year old children was assembled-409 exposed to the site and 454 living more distant. Over a 6-month period, measurement of respiratory symptoms and estimates of associated costs were undertaken once a month by interviewing the mother or another adult responsible of child health. A longitudinal logistical analysis was used to determine the independent effect of the disposal site on the occurrence of respiratory symptoms. Differences in average costs between families of exposed and unexposed children were estimated by non-parametric bootstrap techniques.Exposure to the disposal site was associated with a larger probability of respiratory symptoms (odds ratio=1.37, 95%CI 1.17-1.60) and with higher household medical costs due to respiratory symptoms were on the average US$ 10.19 higher (95% US$ 2.63 - 16,82).Living in neighborhoods close to garbage disposal sites has negative effects on the respiratory health of children and results in increased family costs related to treatment of associated respiratory symptoms.