This sllldy allempts to explore inter clan resource conflicts and local (basically economic)rnins/ability in Somali Regional State_ Conjlict or insecurity hinders local, community. andrnregional development by principally affecting rural pastoral and agro pas/oral productionrnsystems and as a result calisesfiJOd security. Especially, in conflict endemic areas like that ofrnDollo Addo district along the Ethiopia-Soll1alia - Kenya border zone, where the internal andrncross border inter - clan and intra - clan conflicts are higher bath in terms oj ji-eqllency andrni/1tensity (for the last 40 years) the livelihoods of the pastoral and agI'o pastoralist clans arernextrell1ely threatened to greater extent.rnThis study in the 00110 Oddo wereda of Liban Zone in the southeastern Somali Regional staternhas been exposed to natural disasters and conflicts. This study focuses on the inter clanrnherder - farmer conflicts within Degodia and Degodia and their neighbors with more focusrnon internal conflicts within the Degodia. The main assumption in the beginning a/this study wasrnthai as in many arid lowland and river basin lands where natural resource scarcity die/ales thernrelationships among pastoral herders and, herders and farmers sharing a common (shared)rnproduction zones, {he majo,. Calise of conflicts in {he study area would be primarily resource scarciry,rnyet this is without neglecting Ihe socia cuLtural, political and economic/actors.rnAccordingly, natural resources scarcity in both predominantly pastoral and agricultural clan landsrn(within the river basin and its hinterlands) coupled with some other/actors like imposition 0/01' ,lackrnof clear pastoral land tenure policy, creation of clan based administralive structures (ye gossarnyegitosh meret), and the rearrangement of local land boundaries, and demarcation of administrativernborders 0/ the new and old Weredas (for example Dollo wereda has been part of BOI-ana wereda), thernimplementation of decentralized administrative structures, (/994, 2003) and the unchecked injllL< 0/rnlarge number 0/ drought and internal and external conflict displaced herders with their livestock andrnSomali refugees (since 1991) and returnees (since 1985, after 1992) FOIn Somalia and Kenya arernfound to be the inherent cause of conflict in the study area. ~Vilh regard to its nall/re, the inter- andrnintra clan and inter ethnic resource based conjlicts in the study area were found to be of higher inrntheir magnitude of occurrences and intensity and their consequences, which worsens , with (hernaggravation a/resource scarcity and absence a/conflict resolving formal instilutions jar sllstainablernconflict resolution.rnKey words: conn ict, clan, institutions, river basin, herder, farmer, and transformation