on the one hand and its adverse implications for the afforested resource on the other. The project rnas a peri-urban afforestation project was implemented during the i980s to meet the fue l. pole. and rnconstruction wood demands of the ever increasing population of Addis Ababa implemented as a rntop-down intervention the project alienated the local people ji-om their land and denied them of rncustommy rights to manage forest resources. rnThe study is therefore intended to assess the general impact of the proj ect on economic and social rnfabric of the community; to identify the cause of deforestation as it relates to management option. rnlivelihood status and land tenure relation; to see possible management option that curb the rnproblem related to the project and to asses the attitude the community have towards the forest rnresource as well as identifying conflict of interest between different groups Data for this rnresearch was collected using qualitative methods in which f used multiple data collection rntechniques. In the analyses and presentation of findings. the study combined theoretical rnapproaches both in development-displacement studies and natural resource rnmanagement/governance line of thinking. rnThe result of the study shows that like most other projects in this country. the Dire afforestation rnproject was established without consultation of the local communities. The study also found out rnthat the project had impoverished the local community. which not only resulted from the move to rnthe resettlement but also it puts restriction on access to the forest resource. This made the local rncommunity victims of double displacement. Moreover. the diverse interests over the use of rnresource which became scarce led to conflicts and contradictions between the project and the rncommunity on the one hand and within the community on the other. Understanding the rnimpoverishment risks encountered by the people due (0 displacement and protectionist approach rnwhich in turn put the afforested (ree under severe threat. the research calls for another viable rnoption (0 bring about double sustainability both for the people and the afforested trees. The study rnrecommends change in intervention strategy of the government and other stakeholders in favor of rnJoint management approach.