The study was to assess the practice and challenges of good governance local government inrnGasera woreda, Bale Zone, Oromia Regional State. The research was conducted in Gasera rnworeda which was selected purposely. The specific objectives of the research were to assess the rnpractice of good governance principles that exercised in local level, to explore the perception of rnservice providers and community toward the practices and challenges of good governance in rnGasera municipality office, to identify the determinant factors those affect the practices of the rnparticipation, accountability and transparency, effective and efficiently in relation to Gasera rnworeda administration and Come up with possible recommendations that help to curb the rnchallenges of good governance. Among 20 woredas in Bale Zone, Gasera Woreda was selected rnpurposely. Explanatory sequentially design was used for this study. To achieve the objectives of rnthis research both qualitative and quantitative data were used. The respondents of the study were rnselected using simple random sampling and convenience technique. From total population of rn368 respondents 104 residents of Gasera town and 36 from employers of town municipal and rnland management were used as a source of information for this study. Secondary data were rncollected from pertinent sources like institution reports, magazines, internet sources and others. rnSemi structured interview schedule was used for employees and service users and questionnaire rnwas employed for officials to collect data from them. Data were analyzed using percentage and rnfrequencies, tabulation, figure and the like. The finding of the study revealed poor practice of rnimplementing Participation, accountability transparency and effective and efficiently of good rngovernance in the town administration and land management. It also founded that the practice of rngood governance challenged by malfunction with, corruption, lack of commitment and rnbureaucrats skills and ethical problems, lack of capacity in the service providers disseminating rninformation, accessibility of their institutions information, delivering a timely service and rnproviding decision based on reasonable evidence had rarely practiced.rnTherefore, the study recommended that the studied sectors should mainly focus on the rnParticipation, accountability, transparency and effective and efficiency.