Throughout the world, we find human being residing either in urban or rural or inrnbetween urban fringes or rural fringes. Both urbanization and ruralism are counterrncompeting areas whereas the area between is the field of contest As it is concomitant withrnsocio-economic development, urbanization has a higher level of development in developedrnnations than under developed ones. In Ethiopia, although its level is the lowest even amongrnother under developed nations, its rate, however, is the highest and made a country one ofrntwenty-three countries experiencing fast urbanization in the World. As a matter of thisrnfact, Bore Town is among the Ethiopian urban settings experiencing unprecedented raternof urbanization through expansion. Hence, the objective of this study was to assess thernimpacts of urban expansion on the livelihoods of farm households residing in the urbanrnfringes of Bore Town, which is located in the Southern Oromia region of Ethiopia. Thisrnstudy was designed to investigate the land acquisition procedures employed by the townrnadministration, sustainability of livelihood related support provided to dislocated farmrnhouseholds and good practices elsewhere as regards sustainable livelihood strategies.rnBased on the descriptive research design, the study had applied the mix methods of bothrnQualitative and Quantitative approaches. A household survey was conducted on 72 farmrnhouseholds heads sampled through snowball techniques and through employing keyrninformants of the study. Primary data had been collected through questionnaire, semistructuredrninterview guides, participant observation and focus group discussion while thernsecondary one was from different written and documented sources. Having analyzing therncollected data through the SSPS, the finding of the study revealed that the land acquisitionrnprocedures adopted by the town administration take place in the absence of participationrnand consultation with affected farm households. Moreover, the acquisition of land for urban expansion has been taking place without any compensation for loss of assets and improvements made on the land that adversely affected the livelihoods of households and families residing in the urban fringes of Bore town. Hence, the livelihood of such community has been at the verge of risk. This negative externality was attributed mainly to lack of awareness (legal frame work), lack of good governance and lack of goodwill of town administration & lack of observance of existing rules and regulations on land expropriationrnfrom and compensation to farmers were determining factors. Thus, it is the recommendation of this study that there is a need to prevail urban good governance to curtail the problem,rnespecially, following participatory approach on stakeholders, particularly, farmers, inrnto urban development plans and projects, land acquisition procedures should bernimplemented in accordance with provisions of the proclamations and regulations of therncountry that provide for commensurate compensation as well as the sustainable livelihoodrnrelated support to farm households to be dislocated to give way for urban expansion . Therernshould, also, be awareness of existing rules and regulations which guide expropriationrnfrom and compensation to farmers when their land is expropriated for public interest,rnthere should, also, be consideration of the recipients' interests on kind and quantity ofrncompensation to farm households, then, pre-trainings and post coaching need to be carried out to enable such community sustain and secure their livelihood in such changed and continuously re changing urban terrains.rnKeywords: urban expansion, expropriation, compensation, livelihood