Based on East Java Governor Circular Letter Number 460/16474/031/2011 concerning prevention on women trafficking and prostitution, the purpose of this policy is to prevent women trafficking and based on the policy Tulungagung government determined to close prostitution area. The policy have spillover effect that influence not only in terget policy but in other area also. The closure of Kaliwungu prostitution area has an impact on economic, social, and environment near the place. Prostitution area become economic wheel for surrounding area. From those problems the aim of this research is to analyze the implication of the closure of prostitution area for society near the area. In this research, researcher focuses only in society near prostition area not in pimps or sex worker, using ethnometodology-qualitative method and come out with their view of life, the way they adapt with current condition and daily behaviour. To obtain the data researcher used interview and observing method and also from secondary data. The result of this research were there are economic and social impact in society. Direct impact are such as decreasing of employment opportunities and income level after prostitution area closure. Induced impact is household expenses become decreasing and there is reduction term on society increased revenue. In additional indirect impact there is more social interaction changes between society near prostitution area, society in prostitution area, and environment. There is no differences in social interaction between society and sex workes as they has mutual respect between society, pimps and sex workers. Something that appears in society is the insecurities widespread of HIV/AIDs. Not only changes from the closure of prostitution there are positive and negative impact to society such as after closure, there is improvement of religious because there is new have mosque but the negative impact is more in economic term like losing job opportunities. The findings concluded are several economic and social effect after prostitution area closure and the biggest impact in economic term. Decreasing of employment is one of exponent and it has the biggest impact in senior citizen and middle age women who working there. For social and enviromental terms, there are mutual respect in both parties. After the closure there also have negative impact that arise more in economic like losing job and for positive effect in social term like improvement of religusity in community.