Health is one of the most important things which affect human well-being. Due tornits strong relation with well-being, health often treated as an economic goodrnwhich has some value. But, in most of the cases due to lack of market for healthrngoods different health programs face a serious obstacle in identifying therneconomic benefits of health provision or economic cost of lack of access for suchrnserv1ces.rnThis study applies the double bounded contingent valuation method to elicit thernindividuals' WTP for improved malaria prevention by constructing a hypotheticalrnmarket. Two scenarios, a hypothetical drug and environment cleaning programrnwere presented for 271 respondents. The aim of the study was to estimate WTPrnbetween two groups of respondents having different proximity to Koka Dam.rnThose respondents from within three kilometer radius of the Dam considered asrnintervention group and the rest far away from the dam above 8 kilometers werernconsidered as control group.rnThe econometrics results indicate that, variables like female, yearly income, homernownership and being in intervention site are quite significant variables inrnexplaining the individuals probability of 'voting' for the programs and the amountrnfor WTP. The study also revealed that there is a starting point bias when thernfollow-up bid is introduced. Annual Mean willingness to pay for the hypotheticalrndrug scenario is estimated at Birr 86 for intervention site, Birr 85 for control site,rnBirr 108 for husbands, and Birr 92 for wives.rnOn the basis of the findings, the following policy recommendations werernforwarded. Existence of expressed demand for improved malaria treatment callsrnfor Supply-side policy interventions. Strategies should be designed to motivaternthose who can pay for Cost sharing but not marginalizing the poor. Consideringrnenvironment correction as one means to reduce the malaria burden is alsornsuggested.