This study investigates the role of the Cooperative of Waste Pickers Cooperlimpa in Diadema, São Paulo, focusing on its contribution to the circular economy and municipal solid waste management. The research is structured into three stages: secondary data analysis, content analysis of relevant legislation, and documentary/bibliographic analysis of Cooperlimpa’s operations. Cooperlimpa is highlighted as an actor in waste separation, contributing to sustainable development by reducing the need for virgin materials, thereby mitigating environmental impacts and generating income for vulnerable populations. Utilizing the “Interlinkages and Relationships Between Urban Policy Levers for Circular Economy Transitions” as an analytical model, the study underscores Cooperlimpa’s innovative practices in promoting circular economy principles.