Urban ce" ters are expanding towards their periphery rescuing the livelihood ofrnfarmin g communities. Alamgena town has been expanding towards the peripheryrnsince its foundation. The expansion has two characteristics, demand driven expansionrnand supply driven expansion. Expansion before 2002 was caused by increased landrndemand while expansion after 2002 is caused by supply driven expansion. The secondrnexpansion is the result of revision of the town's plan by BOWUD. The plan has broughtrn646.9 hectares of land for urban use from the surrounding rural areas.rnImplementation of the expansion plan has been done through expropriation of landrnfrom (armers holding and as a result, more than 300 (armel's became land less.rnThe thesis dealt about the impact o( the expansion on the livelihood of these farm ers.rnSurveying, key informant in depth interview, (ocus group discussion and personalrnobse rvatif''1s are the methods employed in the thesis.rnResult o( the (indings shows that implemenll..llion o( land expropriation was notrnparticipatory and hence (armers' resistance was observed. In order to control (armers 'rnresistance the implementers use force, which create hostility among farm ers towardsrngovernment o((icials.rnCompensation payment bases have done at (ederal and regional government level.rnThe amount o( income disconnected was what farm ers got as compensation. Duringrnimplementation though the government promised bene(its to the farm ers, they fail tornfUlfill all the promised benefits to the (armers. The expansion has destroyed (anners'rnassets through expropriating their land. Following thiS, they became job insecure. 1.ackrnof due follow up (rom concerned organization, lack of knowledge how to us theirrnmoney and lack o( sill and education are the problems (armers face while they arernadapting urban ways o( Ii(e.rnIn order to alleviate farmers from their problem, Government, NGOs and privaterninvestors should put their effort for farmers.