Aims: In the present study, Vensim was used to simulate waste management system of Tehran, the capital of Iran, with the system dynamic approach. Materials and Methods: The environmental system dynamic modeling is one of the comprehensive simulation tools capable of simulating and analyzing complex systems. In this approach, the model is developed based on the existing realities and userâ€'comments. User participation to develop the model could increase the reliability of the results. Results: The simulation results revealed good conformity with the statistical data. Waste production prediction in the model with real data was more than 95%. Moreover, the effect of applying an encouraging policy for people to separate their waste was considered. The result indicated that applying a new policy, and the economic benefit through this policy would prevent getting a loan from the government after 20 years. Conclusions: It could be concluded that public participation in waste separation was an effective policy to help in the financial independence of the municipality in terms of urban waste management. Moreover, conformity between the simulation results and real data revealed an appropriate capability of the simulated model to predict Tehran waste generation.