The major purpose of this study is to evaluate the progress of community recovery and sustainable development of the region of seismic centre in Taiwan after the 1999 Chi-Chi Earthquake. Data analyzed in this study were collected from a face-to-face interview survey conducted in the research site of Tzu-Shan Town, Nan-Tau County, an area close to the epicentre of Chi-Chi Town, Nan-Tau County. The analysis of this study indicates that before the earthquake the residents of Tzu-Shan Town already faced two serious problems in economics and employment; and the earthquake made the situation even worse for the residents of Tzu-Shan Town. Findings of this study show that the willingness to purchase earthquake insurance and to pay for public facilities during disaster period is positively associated with education and income. In terms of social resources, as high as 84.5% respondents indicated that self-help was most helpful to them after the earthquake, followed by friends and relatives (9.7%); whereas government agencies and NGO's had provided only limited help. A strong consensus among the respondents (82%) indicated that it was necessary to establish a designated agency to take charge in disaster management and resource allocation. Most respondents also considered central government should take the lead to promote recovery.