The development of CBET gives financial incentives for the conservation of natural areas,rneconomic benefits for the local residents and it strengthens the social wellbeing of the localrninhabitants. Thus, the study was conducted to reveal the potentials of Lake Hashenge and itsrnenvirons for CBET development and to highlight the role of developing CBET in mounting therneconomy, empowering the local communities and bringing promising environmentalrnconservation practices in the study area. The study is descriptive in its design and hasrnimplemented both quantitative and qualitative research methods. The principal instrumentsrnused to collect the necessary data were questionnaires, interviews, observations andrndocument analysis. While an in-depth interview has been made with offiCials of differentrngovernment and non governmental offices, 150 questionnaires were distributed to andrncollected from the local communities living in four Kebeles. The gathered essentials arerninterpreted and analyzed using both quantitative and qualitative data analysis strategies.rnResults of the study shows that though Lake Hashenge and its environs have differentrnopportunities to develop CBET, i.e. the existence of multifaceted attractions, i.e. natural,rnhistorical, cultural and archaeological resources, accessibility to these resources, goodrnlocation, promising governmental policies, and the existence of active and interactive localrncommunities, the area is not yet developed and its precious resources are facing differentrnproblems. Therefore, effective, efficient and practical training on tourism and tourism relatedrnbusinesses has to be given to the local communities, administrators and other experts in thernstudy area to build memorandum of understanding between tourism stakeholders to workrnhand in hand in developing infrastructures, facilities and inaugurating CBET projects in LakernHashenge so as to create alternative means of livelihoods to the local communities,rnstrengthen the social wellbeing and preserve the environment sustainably.rnKey Words: CBET, Environmental Conservation, Alternative Livelihood, Lake Hashenge.