The generation of solid waste has become an increasing environmental and publicrnhealth problem everywhere in the world, particularly in developing countries. InrnMekelle city, solid waste management is mainly provided by the municipality and itrnhas been measured and evaluated always based on the role and performance of thernservice provider (supplier of the service) while demand side i.e. Willingness To Payrn(WTP) of the residents is ignored. Therefore, the aim of this paper is to estimate thernhousehold's willingness to pay for one aspect of better environmental qualityrn(improved solid waste management) in Mekelle city.rnrn[n this study, contingent valuation method (C VM) is used as a method of valuation.rnThe empirical models adopted by this study to determine the factors that influencernWTP of household heads for improved solid waste management are, To bit and Porbitrnmodels.rnThe results of the Probit model revealed that probability of WTP of households forrnimproved solid waste management are significantly related to three explanatoryrnvariables and all of the signs of these three variable coefficients (coefficients ofrnincome, awareness of environmental quality and age) make intuitive sense andrnsignificant at 1 %, 5% and 5% respectively. [n the To bit model, 8 out of 12 variablesrnhave statistically significant impact on the amount of WTP for improved solid wasternmanagement system.rnrnThe current payment for sanitation is below the WTP of the residents and the meanrnWTP found in this study can be used for decision making in determining the servicernFee for improved solid waste management.