This study examined the impacts of industrial development on the expropriated households'rnwelfare and surrounding environment in Sabata town, Central Ethiopia. Household survey, focusrngroup discussion, and key informant interviews were used to generate socio-economic data. Thernsamples of industrial wastewater, soil, and vegetables were also collected to measure thernconcentration of physicochemical parameters and heavy metals in the samples. One-wayrnANOVA, endogenous switching regression, P-value, principal component analysis, Pearsonrncorrelation coefficient, hazard index, and bioacculmation factor were employed to analyze thernthe acquisition, compensation and expropriation practices; impact of industrialization onrnwelfare of expropriated households; physicochemicalconcentration of river water and industrialrnwastewater;heavy metal concentration in wastewater, soil, and plants irrigated from industrialrnwastewater in the sampled area. The comparsion made between expropriated and nonrnexpropriated households based on income and expenditure. The results depicted thatrnexpropriated households' income decreases and personal expenditure increases contrary to nonexpropriated households'. The electrical conductivity, biological oxygen demand, totalrnsuspended solid, total Nitrogen, and total Phosphorus were significant along spatio-temporalityrnvariation which depicts the disruption of river water quality by industrial industrial wastewater.rnThe bio-concentration factor of heavy metals was higher than one for copper signifying thernincreasing probability of health risk for those who consume vegetables grown in the area. Thernsoil and river systems in the industrial areas must be reclaimed/restored using the existingrnindustrial pollution control standard, installation of the treatment plant, transformation ofrnindustrial residual into biogas products, and realization of corporate social responsibility. Thernland acquisition induced compensation practices and expropriated households' welfare mustrnalso need to be restored through the implementation of collaborative property valuation,rnresettlement programs, and allocation of share from the company.