Bus transit system plays a major role in combating both air pollution and road congestion and isrnone of the most important modes of transportation. In spite all this however, it is not consideredrnto be reliable mode of transportation by its customers. The complex nature of the transportationrnsystem in general and bus transit operation in particular makes it difficult for the application ofrntraditional mathematical model. In this thesis, the problem of regulating and monitoring thernreliability of a bus transit system using a SWARM artificial intelligence solution is addressed.rnThe increasing availability of near-real time data from intelligent bus transit system makes thernapplicability of such solution more attractive. As the bus transit system is distributed andrnstochastically dynamic because of uncertain inter-stop trip time and uneven passengerrndistribution, the application of interaction based and emergent self-organized solution such asrnswarm ai solution is highly recommended. The problem is formulated as a distributed motionrncoordination problem. A gradient field (co-field) coordination model of swarm artificialrnintelligence which is inspired by the nature of naturally found fields such as electro statistic andrnelectromagnetic fields is used to solve the proposed model. Multi-agent simulation model is usedrnboth to model the bus transit system and to iteratively design the SWARM artificial intelligencernmetaheuristics. The simulation is implemented with NetLogo integrated developmentrnenvironment so that the desired emergent phenomena is designed and evaluated. Line 31 ofrnAmbessa Awtobis organization, Addis Ababa, Ethiopia, is taken as a case study to improve thernreliability of the developed multi-agent simulation. Different simulation experiment is carried outrnand different measure of effectiveness of the system is collected. The result from the multi-agentrnsimulation experiment shows that the proposed method is adaptive to wider passenger densityrnscenarios. From the result, we can conclude that decentralized metaheuristics of control methodsrnwithout any sort of formal mathematical model can be a viable solution for improving the busrntransit system reliability problem. More over this method also helps to solve the problem of howrneffectively to utilize the increasingly available huge near-time data from intelligent transitrnsystem. Our recommendation is that a research on design support system of swarm Artificialrnintelligence solution, such as reducing a programming overhead for rapid prototyping ofrnemergent phenomena is worth doing in the future.rnKey words: Bus transit reliability problem, Bus holding, Computational field, Multi-agent simulation, Case study