This article is a response to the disappointing results of the policies adopted by the Government of Georgia, aiming to provide a durable housing solution and aspiring to enhance the livelihood opportunities of the population displaced during the territorial conflicts of the early 1990s and 2008. The study finds that while the policies partially provided the displaced with housing and land, they eroded probably their most important asset – labour – by resettling them in remote rural areas, where employment opportunities are scarce, if there are any at all. The article distinguishes between the “new” internally displaced persons from 2008 and the “old” or previous internally displaced persons from the early 1990s. It argues that the Government should not deal with their problems in a “one size fits all” manner, but it should rather tailor resettlement policies to the internally displaced persons’ existing asset-base and their location.