The Lake environment provides many goods and services depending on the different attributes ofrnthe surrounding environment. In this paper, we identified, among other things three attributes,rni.e. , two environmental attributes (Tilapia fish stock, Surrounding forest cover) and one monetaryrnattribute (fishing permit).rnWe, Carry out a Choice experiment among fishermen of Awassa Lake to estimate the value ofrnimprovement of the lake quality in general in terms of the attributes selected. We analyzed therndata using Multinomial logit model and derive important issues concerning the preferences ofrnfishermen of Lake Awassa. Results confirm that fishermen of Awassa Lake have high levels ofrnenvironmental concern and are willing to pay for the improvement of the lake environment inrnterms of the attributes selected in the Choice experiment.rnrnAccording to our result the most preferred attribute is Tilapia stock and it is also a significantrnattribute and therefore the most urgent action is to firstly to prevent further depletion of thernTilapia fish stock of the lake. This is also reflected in their higher willingness to pay for Tilapiarnfish stock improvement. Very low willingness to pay is observed for improvement in therndegraded surrounding vegetation and forest cover of the lake. The marginal willingness tornpay(implicit prices) for the environmental attributes Tilapia fish stock and Surrounding forestrncover were estimated. The mean WTP for Tilapia fish stock improvement is estimated to be 8.83rnbirr per month. However, mean willingness to pay for improvements in the surrounding forestrncover is almost insignificant. Compensating surplus estimates which reflect overall willingness tornpay for a change from the status quo (current situation) to alternative improvement scenariosrnwere also calculated. The estimate for the high impact scenario was estimated to be 31.42 birr, forrnmedium impact scenario 28.62 birr and for low impact scenario it was 18.62 birr per month.