In recent years, the generation of solid waste is increasing in Adama town due tornrapid urbanization and population growth. Currently, oul of Ihe total wasterngenerated in the town about 50-60 % is properly collected and disposed Thernremaining amount of the waste is disposed on open spaces, streets and drainagernchannels along roadsides of the town. This uncollected solid waste in many placesrnof the town may have serious adverse effect on public health and environmentalrnquality. Moreover, the formal dlllnpsite, located some 8 km away from the center ofrnthe toil'n, does not appear to have proper measures to control runoffs ji-om rainrnfall. Thus, conducting a study on the demand for improved solid waste collectionrnand disposal services is essential. The principal o~jective of this study is to analyzernhouseholds ' preferences for improved solid waste management in Adama town.rnDifferent solid waste management options are defined by the service attributes ofrnfrequency of waste collection ji-om households, separation of waste at source,rnpollution control measures at the dumpsite and monthly service charge. The studyrnemployed the choice modeling technique, which is a stated preference method forrnthe valuation of non-marketed environmental goods and services. The survey wasrnadministered on a random sample of 188 household5 in the town. The data wasrnanalyzed using Multinomial Logit and Random Parameter Logit models. Thernres ults of the study revealed that improvement in the levels of all the non-monetmyrnattributes of the service increase the utility of respondents. In addition, householdsrnwith higher monthly total income, larger family size, as well as respondents withrnhigher levels of education favor the improved plans of solid waste managementrnmore ji-equently. Furthermore, households have a positive willingness to pay forrnimprovement in the level of each non-monetmy attribute. In conclusion, householdsrnin Adama town are willing to pay for improved solid waste collection and disposalrnservices. The implication is that any policy directed towards the provision ofrneffeclive solid wasle management in the town should incorporate demand siderninformation.