The objective of this study is to examine determinants of urban-rural linkages for localrndevelopments in Tulu Bolo Town and its surrounding rural areas. To attain this objective, thernrequired data was collected from primary and secondary sources using survey questionnaire andrnkey informant interviews. The sample consisted of 235 householdsâ€Ÿ selected using randomrnsampling method and purposive sample. Both descriptive and econometrics analysis werernemployed to meet the objective of the study. The result from the descriptive analysis indicatesrnthat, most of the linkages that exist in the study area are sectorial linkages and spatial linkages. Arnspatial linkage in the study area shows flow of goods, money, and technology and informationrnlinkages. Sectorial linkages are the connection between agriculture (crop production, livestockrnproduction) and manufacturing (use of agricultural inputs such as fertilizer, improved seeds,rnherbicides and pesticides) linkages. The nature and type of these linkages are affected by factorsrnrelated to infrastructure, subsistence nature of production, lack of market information, lack ofrnguideline and organized planning, and low purchasing power of most of the residents. Urbanrural linkages are energetic for local development in terms of income and wealth generation,rneconomic activities diversification, and increase opportunities for employment; improvernwellbeing and livelihood of the study area.rnAfter endogeneity problems among different factors are detected, logit regressions were run tornidentify important determinants. The results revealed that sex of the respondents, land owned,rnAccess to credit, access to infrastructure facilities and distance have significant and positivern(more) influence on the determinant of urban-rural linkage for local development. However,rnfamily size, market availability and livestock owned have significant and negative impact on therndeterminant of urban-rural linkage for local developments. Accordingly, the study recommendsrnthat the Tulu Bolo Town and Rural administration, Oromia regional state and Federalrngovernment need to develop an integrated URLs program in collaboration with stakeholders sornas to encourage mutual development of urban and rural areas. Hence, to enhance urban-ruralrnlinkages in the study area, it is essential to take measure on the factors that hinder mutualrndevelopment of both urban and rural areas.