In some ways we can describe decision making as the most common human activity.rnAlmost every thing that we do involves decision. Viewed in other way, this indeedrnimplies that we have developed many innate mechanisms for effective intuitive decisionrnmaking in our best interest. However, some decision making are difficult and give risernto the need to think through the process of decision making. With this understanding,rnthe study has investigated the effectiveness of Sebeta municipality's residential andrninvestment land allocation decision and the extent to which power of the officials arernbeing used equally and transparently in the allocation of town's land. To this end, thernresult of the study shows that the municipality has official criteria in residential andrninvestment land allocation decision. However, the finding indicated that there are otherrnfactors affecting land allocation other than the criteria set by the municipality such asrnpolitical participation, informal relationships, ethnicity and economic recognition.