Following the Peruvian earthquake of May 1970, the devastated provincial town of Huarez received massive amounts of disaster relief aid. The reconstruction process rapidly transformed the economic and social structure of the community by causing a shortlived boom which raised the expectations of the population. Once the relief agencies withdrew, the demand for goods and services fell sharply and the people were forced to readjust to a less prosperous life. It also appeared that their capacity to respond to future disasters had not been significantly unproved. This case study highlights the need for research into the long term consequences of disaster relief.