The people of Lipsi are active in farming (viticulture, wine-making, olives - olive oil), in livestock breeding (production of local cheeses), in fishing, commerce and tourism. A traditional winery, olive press and cheese-dairy operate on the island. 

On this tiny island in the Dodecanese, of the 784 residents, 200 are children under the age of 18, and there is a kindergarten, elementary school, and high-school. 



The Municipal Authority of Lipsi has a Dance group, Philharmonic band, Sports and Sailing Clubs, and in recent years it has been twinned with the cities of Karavas in Cyprus and Male Trento in Italy. 

The locals are very active in issues of environmental protection and preservation. There is a biological waste-treatment plant and a sanitary landfill site on the island, and for several years now a successful recycling program has been in operation for four main materials: plastic, paper, aluminum and glass. The system implemented involves the sorting of waste and collection at home, and the island has one of the highest rates in Greece for recycling volume per resident.