My interest to conduct a study on the partially despised Waata was since 1995. I went to the study area for rnthe first time in order to collect data on customary marriage of the Jiddoo Kombolchaa people among Arsii rnOromo. In 2001 , I conducted another study on their mourning ritual. In August 2004, I surveyed Worjoo rnWoshgulla and Faajjii Qaraaruu to start a study on the power and authority of the partially marginalized rnWaata in dispute settlement. To that effect, I used the myth of Waata's origin, their categorization as rnOromo, classification as "caste," and I have analyzed it from anthropological emie and etie perspectives. rnThe change and continuity of Waata's role in dispute settlement, their ritual power of blessings and social rnstatus in customary blood feud recompense has also been dealt with. rnI collected primary data led by two full time field guides. I have reviewed relevant literature throughout my rntwo years stay in the university. The major methods employed were key informant interviews, group rndiscussions, informal talks, observations and browsing through published and unpublished sources. Data rnwere mostly recorded using audio cassettes and taking pictures. Sound records were also transcribed rnduring each night and reorganized for the next day gap filling interviews. Field notes were taken and rnpreliminary analysis of data was made side by side the data collection and transcription. The categories of rninformants included all Waata community members excluding children below their early twenties, rnpurposively selected elders from Utaa - Waayyuu sub - moiety, local government officials, some experts rnfrom culture and legal departments of the East Shoa zone, other distanced minority members and some rnliterates from different backgrounds. rnThe most important findings of this investigation are: one, Worjoo Woshgulla and Faajjii Qaraaruu Waata rnseem fulfill only one of the six characteristic features of the "caste" classification. Two, the original forefather rnof both Waata and Arsii was a person called Banii/Banoo whose younger son, Hoomaa, took the power of rnthe elder, Waayyuu, through seera ("law") and left him spiritual power only. Three, Waata and Qaalluu seem rnone and the same during early times but divided later on. Four, on blood feud recompense ritual Bokkuu, rn("chief of Chiefs") slaughters duJ/aeha keeraa ("old cattle") while Waata slaughters hoolaa gurraattii, ("black rnsheep"). Five, homicidal cases are reconciled through fixa gumaa ritual while recompenses of crimes rnoutside killing are settled through gumfakkii. Six, misunderstandings between custom and contemporary rnlegal systems has left some criminals undetected. On the basis of these fieldwork findings, the thesis finally rnconcludes that the despising of Waata and other minority groups is the result of internal division of labor for rnwise use of scarce resources. The special role despised minorities play in the social system helps to keep rnthe continued existence of the society. Although some scholars argue as if customary activities decline rnslowly and led to disappearance, it seems from this study that customs undergo some changes and/or bear rnsome symptoms of disappearance but regenerate depending up on local conditions