In recent decades, however, things have changed, and nowadays Livigno enjoys a better economic situation and a higher number of inhabitants.

[3] Livigno's economy is based on tourism, both in winter and in summer, and on its duty-free status, with goods sold at bargain prices.

Some houses and a church, "Chiesetta di Viera" lying in the valley where the reservoir would be built, had to be demolished.

The current building incorporated the previous one, which was left standing until the end of works, allowing church services to be carried out as usual.

The justification for such a status is the difficulty in reaching Livigno during winter, and the centuries-long history of poverty in the region.

Two link to Switzerland, one through the Forcola di Livigno, elevation 2,315 m (7,595 ft) and open in summer only, and the second through the Munt la Schera Tunnel.

Leaving Livigno for the rest of Italy, there is a customs checkpoint on the road staffed by officers of the Italian militarized Guardia di Finanza.

Entering or leaving from or to Switzerland there are both Guardia di Finanza officers and Swiss Border Guards.

This generated some prejudice in the remaining population of Valtellina, where smuggling was also widespread, with the local proverb gent de cunfin, tücc' lader o asesin, or "border people, all thieves or murderers".

Many inhabitants of Valtellina visit once in a while to buy goods at substantially lower prices, especially tax-free gasoline, sometimes from as far as Sondrio.

The 2005 Union Cycliste Internationale mountain biking world championships were held here, from 28 August to 4 September.

Its name means "without VAT", referring to the special duty-free status of Livigno and of all cultural products.

Livigno ski area: 115 km of piste (12 black runs, 37 red and 29 blue slopes).

Furthermore, due to its 1,816 m (5,958 ft) above sea level, Livigno often hosts the training sessions of professional athletes of different disciplines, who come to the alpine resort to benefit from the high altitude.