Rapid urban development and increasing landuse changes due to increasingrnpopulation and economic growth is being witnessed of in Ethiopia and otherrndeveloping countries. The measurement and monitoring of these land usernchanges are crucial to understand land use cover dynamics over different spatialrnand temporal time scales for effective land management. Urban sprawl may berndefined as the scattering of new development on isolated tracts, separated fromrnother areas by vacant land (Ottensmann, 1977). Geographic Information Systemrnand Remote Sensing data were used to analyze the pattern of urbanization. Thisrnwas done using temporal satellite image of the study area in year 1986 and 1999rnand demographic details from central statistics agency of FDRE. This enabled inrnquantifying the increase in the built-up area for nearly 14 years. The built up alsornhelps to identify the Shannon¡fls entr opy,which is a measure of concentration ofrndispersion. With intent of identifying the causal factors, this could be modeled andrnprojected for the future decades. This study is aimed at helping scientists, policyrnmakers, engineers, urban planners and ultimately the common man to visualizernhow towns and cities grow over a period of time based on investigations in thernregions around the highway and cities