Informal sector activities are prevalent in urban areas of Morocco, posing significant challenges to formal legal systems. An ethnographic study was conducted in Casablanca, utilising participant observation, semi-structured interviews, and archival research methods. Informal sector actors adapted by forming community-based dispute resolution mechanisms that effectively managed conflicts despite legal system deficiencies. This adaptation demonstrated the potential for informal sectors to complement formal legal systems in urban contexts. Urban planners should incorporate community-led conflict resolution services into public safety strategies.