Alternatively, the Trash Can is an interface feature which came in the 1.0.6 Update, which allows the user to dispose of any unwanted item in their inventory. This can also be used as an extra inventory space. When you put an item in the trash can in your inventory you are able to put another item over it, which permanently deletes the previous item you put in that space. This space in the inventory should not be confused with the trash can item, which does not delete your items that are placed in it.
Although the furniture item is called a Trash Can, its use is for the storage of items, effectively making it just like a Chest.
The trash can is great for making Urban look-a-like spots, or for example, making a city.