This study is aimed at discovering the negative externalities a landfill imposes on public health. For this purpose, the study uses a health production function to estimate the health impacts on the people who live closer to a landfill. This is done by collecting the data of 150 households through a primary survey in the colonies close to a landfill. The -health production function is a theoretical model which treats various factors such as social factors, economic factors as well as environmental factors as an input in the health production system. And for this firstly, the colonies are identified in such a manner that they have similar socioeconomic demographics, and the only dissimilarity in these colonies is the distance from the landfill site. The farthest colony among the three is taken as a base colony so that all things (other than the landfill) affecting health can be controlled for. It was found that the people living closest to the landfill site are at a 5.5 times more risk of falling sick as compared to the base category (living at a safe distance from the landfill site). And for the colony located at a 500 meters distance suffered around 3 times the risk of falling sick. All these findings make it an important to implement precautionary requirements for constructing a landfill at least 1 kilo metre away from the landfill site. A total of five crores and fifty lakhs per year is the economic loss to the people living in Rajveer and Gharoli Colony.