Various studies suggest and forecast rapid urban growth in developing countries. Rapid rnurbanization in Ethiopia is a formal process in which inhabitants of designated (including) rural rnvillages become urban residents by law. However, its empirical development and the rnsocioeconomic and spatial impact of the intervention on early settlers have not been well rndocumented and its consequences for inclusiveness have not been well understood.rnThe main contribution of this research is, first, to fill the research gap by providing a more up-to date empirical study of pre-planning development and intervention of peri-urban settlements in rnMekelle and, in particular, in the settlement of Adi Dairo. Second, to know the extent of the rninclusiveness of early settlers on the peri-urban planning process and implemented development rnplan. To achieve this objective, the study used a case study method. The study comprisesrnquantitative and qualitative methods to explore the extent and depth of the problem.rnFindings show that the pre-planning peri-urban settlements mainly develop because of rndemographics increase (fertility), migration and reclassification or demarcation of the area to the rncity. Thus, the settlement gets denser, economically change from agricultural dominant land use to rnresidence and services use, and change its morphology. Besides, the planning process was weak rnin the participation of the settlers, lacks documenting existed socio-economic and spatial situation rnof the settlers, weak analysis, and incomplete LDP especially land use and parcellation. This rnsituation has led economically to losing the primary job, unemployment, unaffordability and extra rnexpense for transport, service and daily consumptions. Socially to marginalization and rngentrification. Moreover, spatially leads to demolishing and rearranging their house without rncompensation, dislocation far from their previous settlement and lack of open spaces. The rntransformation has also positive impacts on the provision of infrastructure, accessible streets and rngetting an extra source of income.rnTo solve the negative impacts, the peri-urban settlement should develop with a different type of rndeveloping intervention model within its indigenousness and a thorough analysis of the actual rnsituation of settlements. Besides, the intervention should be in such a way as to help the early rnsettlers transform their lives, increases the quality of life, in a compact form, and inclusive in the rnplanning process and the development plan or design itself.