This study on Farmer-Herder conflict attempted to explore one area of thernproblems of local development, which is local instability. Conflict hampersrnlocal and national development by mainly affecting rural agro-pastoralrnproductivity. Especially in conflict prone areas where the conflicts are ofrnhigher magnitude, the livelihoods of the producer communities arernthreatened to greater extents.rnThis study, on the highland-lowland transition zone of NortheasternrnEthiopia, and particularly on Quowet Wereda of North Shewa Zone, hasrnexplored the nature and causes of the conflict in the study area. The primernassumption at the beginning of the study was that as in many semi-aridrnareas where natural resource scarcity dictates the relationship amongrnfarmers and herders sharing a common production zones, the major causernof conflict in this area would be resource scarcity. The study also revealedrnthat natural resource scarcity, coupled with other factors like tenure andrnboundary regulations, was found to be the inherent cause of conflictrnbetween farmers and herders. The conflict in the study area was found tornbe of higher magnitude both in terms of recurrence and intensity, whichrnworsens with the aggravation of resource scarcity in the absence ofrnsustainable conflict resolution