Reasons for living in the high-risk community Old Coronation, in South Africa, were investigated in a study based on grounded theory. The community is situated in an old mining area with many hazards, including a constant risk of collapsing sink-holes. Information was mainly collected through semi-structured interviews with the residents. An analysis of the reasons for living in Old Coronation were based on descriptions of a) why they moved to Old Coronation, b) factors that residents value in a community and c) residents’ relation to hazards in the area. The logic for settling in the community is complex but could be structured into five main reasons: nearby jobs, lack of suitable land, established community, family, and institutional issues. Risk awareness is unexpectedly high, and people know about risks associated with the sink-holes but consider the benefits of living in Old Coronation to be more important. A local descriptive analysis of reasons for settling is necessary to facilitate future preventive measures.