Conceptually, this study relates to the terms and conditions on which land isrnheld and used and, the mechanisms by which rights to land are transferred inrnrural and urban interface area. The specific objective is to explore the majorrnkinds and features of the land tenure and land markets operating in the periurbanrnareas of Addis, the processes by which land held by indigenousrnpeasant communities is transferred to urban groups, major characteristics ofrnparlies transacting and factors governing the performance of the land tenurernand land markets. The study also seeks to fill gap of understanding of therncontradictions and frictions that exist at the interface of rural and urban.rnBroadly speaking two different forms of tenure prevailed in the study areas.rnThese are peasant holder land tenure and the modern lease tenure. Thernlands of the study areas are rented to fellow peasants or sold to urbanrnmoneybags by the peasants and leased to modern private business/industrialrnmen by government. With regard to the rental tenure the 'landlords ' (i.ernrenters) are the poor while the 'tenants ' (i.e rentees) are the betfer-offs amongrnthe peasant farmers themselves. Parallel to this, modern urbanrnindustrial!commercial investors are acquiring peri-urban lands by lease. Thisrnindicates that the system of land tenure in the peri-urban areas showsrndistinction between urban rich and rural inhabitants on the one hand, andrnbetween the rich and poor within the rural groups. Peri-urban area peasantrnholders have been victims of frequent land redistribution,. forced cooperetivasation,rnvillagization, etc of the Derg time. Now they are victims ofrnlease tenure. While the urban elites enjoy security of tenure for the number ofrnyears specified in the lease contracts the indigenous peasant appearrntemporary holders.rnWith regard to the land markets, the peri-urban areas are characterized byrnintense urban and agricultural land transactions. The lands of the study areasrnare rented to fellow peasants or sold to urban moneybags by the peasants orrnleased to modern private businessmen by the government. Neither thernpeasant holders are capable to withstand the pressures of land markets,rnwhether for their own poverty and/or manipulation of land speculators or thernurban elite, neither the PA or above level leadership found withstanding theirrnmanipulation (bribery). While those in rural Ethiopia have, at least, thernopportunity for being agricultural labour force or tenants to individuals whornhave purchased their plots or daily labourers on agricultural investmentrnprojects formally acquired their holdings, the impacted peri-urbanrncommunities haven1. They have neither the skill nor the training/education orrnexperience required in modern non-agricultural developments emerging inrntheir localities. The markets are segmented into urban and rural, rich andrnpoor, male and female and, formal and informal markets. Unless therncircumstance faced by the peri-urban area peasant communities isrnresponsibly treated and the problems resolved not only their conditionrndeteriorates but also mass eviction will be likely in the near future