Up to £47 million is to be made available mainly in Dundee, Edinburgh, Falkirk, Glasgow, South Lanarkshire and West Dunbartonshire as they are the six Scottish council areas with the highest number of people living in flats.
With around 33% of households north of the border multi-occupancy properties concentrated in large towns and cities, the move is designed to give everyone an equal opportunity to recycle.
Environment Minister Ross Finnie said: We know everyone in Scotland wants to recycle. The number of people regularly recycling is on the rise and I want to say thank you for that.
However, recent research has shown that people living in flats and high rises are not participating as much as we would like. Thats because services for many flats are local recycling centres or kerbside collection points some distance away.
The money, part of a Strategic Waste Fund allocation will be available to all 32 Scottish local authorities between 2006 and 2020 mainly to assist in kerbside collection schemes.
Finnie added: Successful pilots across the country have shown that we can provide convenient, cost-effective recycling facilities for people living in flats. This now means that another half a million Scots really can reduce, reuse and recycle.
Glasgow City Council will be provided with £27 million of the funding to provide a fortnightly backcourt collection service to 120,000 tenement households across the city while £3.3 million will go to South Lanarkshires efforts to collect paper, card, cans and mixed plastics from 15,000 households.
Final discussions are underway regarding the provision of on-street recycling services to an additional 60,000 households in multi-occupancy properties in Edinburgh.
While Aberdeen City Council took part in a pilot scheme but has stated that it will not yet provide recycling facilities specifically to multi-occupancy properties.