Rapid growth of informal settlements in developing countries constitutes one of the mostrnintriguing forms of urbanization. However, factors and theories underpinning this rapid andrnprevalent dynamic of informal settlements are often restricted to the descriptive phase. Thernpurpose of this study is to investigates the land administration model that is used to regulate thernexpansion of informal settlements in Hossana Town administration. This paper present howrnInformal Settlement Growth Model (ISGM) be alternative to improve the current GIS approach.rnThis paper proposes a mixed method research methodology. It propose three steps: (1) collectrninformation through interviews, questionnaires documents and field observation on the internalrnand external factors of informal settlements, (2) incorporate the collected data and models tornanalysis data, and (3) suggest the recommendation for improving effective land administrationrnsystem with respect to informal settlements.The studyprovides thatfrom the total population ofrnHossana Town 19.4% livelihoods are squatters.From those who owned land in unplanned area,rn77% obtainedby fools gift or without legal certification.The problem of informal settlements inrnHossana Town has been attributed to deficits in housing supply, high home rent and expensivernland tender price. The implementation of good land administration model is appropriate tornreduce the major constraints.rnKey Words: Informal Settlement, Squatting, Land Administration, Land Right