The city's role as the regional center for government and services helps to stabilize seasonal employment. Many residents depend on subsistence activities, and trapping of beaver, otter, mink, lynx and fox provide cash income. Salmon, grayling, pike, moose, bear, caribou, and berries are harvested. Dillingham's water is derived from three deep wells. Over one-half of homes use individual wells.
Sewage is collected by pipe, deposited and treated in a sewage lagoon.
Residents outside of the townsite use individual wells and septic systems. Dillingham Refuse Inc., a private firm, collects refuse three times a week. The Senior Center collects aluminum for recycling, and NAPA recycles used batteries. The Chamber of Commerce coordinates recycling of several materials, including fishing web. A new landfill site with a baling facility is currently being planned.