In the Ethiopian federal system, local governments have been established, among others, for thernaccommodation of diversity and administrative purpose. This study explores the value ofrnestablishing local government to accommodate intra-state minority in Gambella regional state.rnThe region has established nationality zones and special woreda to accommodate thern“indigenous†ethnic communities. Specially, Itang special woreda is the interesting case studyrnarea for three reasons: (i) It is established for both regional majority Anyuaa and Nuer ethnicrngroups and for the regional minority of Opo ethnic community; (ii) It has been a cause for ethnicrnconflict in the region. (iii) The residents of the special woreda have representatives in bothrnAnyuaa and Nuer nationality zones over and above in the special woreda. Accordingly, the studyrnassesses the significance of establishing Itang as special woreda to accommodate intra-localrnminority. The study has used primary sources obtained from the key informants of the studyrnarea. On the other hand, to address the objectives and to answer the questions of the studyrnsecondary sources were used. As the findings show it is difficult to conclude Itang wasrnestablished based on adequate legal framework and agreement of the three “indigenous†ethnicrngroups. As a result the special woreda is challenged to; accommodate intra-local diversity,rnmanage ethnic-based conflict, improve the access of public-service, and minimize politicalrntension between the Anyuaa and Nuer ethnic groups.