The excessive accumulation of slums and informal unplanned residential houses in therncapital city of Addis Ababa has been the brutal problem/or the proper growth of the city.rnThe city being one of the places where the highest quantities sub standard and informalrnresidential houses are found, it seems that the task of achieving sustainable urban expansionrnis by far beyond the reach of the prevailing tactics. On top of the long-standing experiencernof the city 10 have shelter for its dwellers informally, the current natural urban populationrnpressure and rural urban migration places the foremost obstacle in achieving the intendedrnobjective in the provision of decent housing for the inhabitants.rnAs it has been observed, the experience of squalling on various peripheral areas of the cityrnis increaSing at an alarming rate Fom time to time, which in turn adds up on the stocks ofrnurban problem prevailing in the city. The City government has been taking variousrnmeasurers including demolishing of the informal residential houses so as to minimize andrnthereby control the problem. Task forces were already on duty in each decentralizedrnkebeles, in each of the ten sub cities to monitor and report to the concerned body.rnParts of this study therefore, focus, on the measures the city government has devised for thernregularization o/the old informal residential houses in the city. Accordingly, the studyrnallempted to indicate the nature, process and consequences of the informal residential landrnregularization in Addis Ababa. Why did the city government encouraged to formulatern"Regulation Number One "? Has the policy benefited both the policy makers and therndwellers as intended? And what were the long run consequences of such a policies on thernlivelihood of the urban community? These and similar issues were thoroughly discussed inrnthe study.rnSubstantial informal residual holdings have been regularized. However majority of thernrespondents were st ill complaining of the process and cost involved. Most importantly thernexecutive officials at the sub city levels seem to be unhappy on their duty. The formidablernimplication, however, is that the majority 0/ the respondents believe that similarrnregularizatian programs will continue in the future. The striking event here is that thernregularization measure which has the intention of curbing informal selliement ratherrnseemed to induce filrther informalityrnDevelopment of inclusive land use and urban housing policy through appropriate researchrnis inevitable, for the proper urban growth and sustainable urban development