Jimma is one of the oldest towns which rendered urban service for areas located inrnsouth-Western Ethiopia.rnThe early origin and the later development of the town benefited its strategic location,rnearly discovery of coffee and participation in distant trade. it also depend on the wisernmanagement of its leaders who pacified the region and allracted more people with differentrnviews and wealth to the area.rnThe italian plan to promote the town as the second "Rome" and the monarchical rulernJimma as "Yewubet" ketema accelerated it progress.rnThe town covers 4622.58 hectares of area. The population of the town projected forrnthe year 2000 is 119510.rnThe study area is divided into three keflegnas which further clustered into 19 kebelernunits, though hazy with distinctively definedfimctional centers.rnThe objectives of the study was set 10 evaluate the level of its development by assessingrnthe trends of the inter relationship between the growth of its population, economic, and,rninfrastructural foundations.rnThe present urban environment of the town is characterized by population pressurernand fast expanding physical area.rnThe town lacks stable management due to unsustainable bureaucracy which isrnorganized on poor staff profile, which in one way or another contributed to the town to possesrnpoor revenue base.rnThe factors illustrated in combination compounded the problem and there byrnexaceberated the infrastrur;.tural foundation.rnThe problems are analyzed interms of administrative, demographic and economicrneffects on the infrastructural foundation of the town.rnIt has emphatically examined the sources of revenue, budget selling (allocation), andrnsector plan implementatiOn. Therefore found out the existence of weak correlation in the firstrnand stronger one in the later. It also surveyed the income variation of the populationrnunderstudy, which also manifested in serious gap. High unemployment rate and the basicrnvariables that contributed to sluggish economic development of the town were rooted to therncurrent fall in coffee price.rnin its conclusion the paper tried to suggest for alternate policy measures to amelioraternthe prevalent poor economic and infrastructuralfoundation.rnTo mitigate the issues, it suggested for an inquiry of policy amendment for sustainablernbureaucracy for the town administration and continuing education opportunity for the staffrnprofile.rnIt also opinionated for institutional mechanism that can fully enforce collection andrnpromote more buoyant revenue internally and policy guaranteed enough to allract externalrnsource of revenue for more and more business in the town.rnFor the time being the intensively implemented family planning exercises no doubtrncould stabilize the population growth, nevertheless for greater progress the townrnadministration must seek ways to strengthen the productivity of the tertiary sectorrnmanagement (trade, transports). The town could best serve and benefit in this sector till thernrealization of industrial economy.