Lake Tana is found in North West of the country & it is the biggest lake inrnthe country. The lake is with higher potential & with unique fish faunarnbarbus. The fishery has started to develop with the help of foreign NGO' s.rnHowever, fish exploitation does not exceed 1500 ton per year. On the otherrnhand, different studies & including this paper have shown that the catch isrndeclining since 1997/98 in the inshore. This is because of social, economicalrn& institutional factors.rnAccording to the secondary data & survey conducted, the lake isrncontributing to livelihood 3457 people of the surrounding people in differentrnways. However, the policy of the region is maximum sustainable yield but inrnpractice it is an open-access (un controlled fishing activities). As the studyrnshows considering the inshore the actual harvest is above the optimum catchrnin both motorized & reed boats. There is loss of biodiversity of the fisheryrndue to the above mentioned factors. Therefore, the fishery managementrnshould use strategy which brings the fishing to the level of optimal by usingrncommand & control & economic incentives. The first one refers to licensing,rngear restriction and close specific season etc & the second one refers torngiving credit & tax imposing tax for in shore and minimum tax for offshore.rnTherefore, greater attention should be given in managing & appropriate usernof there source before the stage of extinction reached. If it reaches extinctionrnthe socio-economic livelihood o fthe surrounding will be suffered. This leadsrnto food self insufficient.