The main purpose of this study was to identify the majorrnfactors that influence household demand for schooling in ruralrnBale Zone .rnIn order to fulfill this purpose, basic , questionsrnwere raised regarding the utilization Qf $chool resources, thernbackgroundrnofrnthernchildrenrnwhornmostlyrnlackrnschoolingrnopportunity, the fa9tors that determine school participation inrngeneralrnandrndifferenc~rninrnschoolingrnbetweenrnsexesrninrnparticular.rnTh~rnst~qyrnwas carrie~ 9ut in eight rural primary schoolsrnand ~7 peasant assoc;:iatiQns that use these schools.rnThernsources of information were 2~0 household heads (~OO householdrnheads having at least one schooling child, ~oo household headsrnhaving no schooling child and 50 household heads of drop-outrnchildren) eight school directors, 98 teacher$, 497 students andrn50 non-schooling primary $chool-age children. Household heads'rnandrnnon-schoolingrnchildren'srninterviewsrnandrnteachers',rndirectors'and students' questionnaires were the instrumentsrnused to gather information for the study.rnThe data obtainedrnwerernanQ.lysedrnthr9ughrnqvalitativernmethod,rnpercentages,rncorrelatiQn coeffjcient and average rank order.rnBased on thernanalysis made, the following major findings were obtained.rn•rnfrnThere is under utilization of teachers and an indicationrnof crowdedn~ss of classrooms in some of th~ surveyed schools.rnThe finding$ of the st~dy also has shown that, the demand ofrnthe households for schooling in the surveyed areaS is low whichrnwas indicated by low and fluctuating enrollment growth rate andrnhigh drop-out. Drop-out is more severe at lower grades and forrngirls.rnIn general, females have low school participationrnbecause of the low demand of the households for schooling themrndue to high home duties on females, parents' perception of lowrnemployment prospect for educated females and marriage of girls.rnMajority of the students are older for their grades, andrnthere are more over-age males than femaJes. Children from thernhousehold head$ who $peak Oromo ~anguage as their mother tonguernhav~ a r~l~tively low sch09J. participation thQ.n children fromrnAmhariq mQther tongue hqu$eholds when C9mpQ.red with thernproPQrtion Of the hou$eholds by mother ton~ue. Muslim childrenrnin general and Muslim girJs in particul~r are the other groupsrnjiof children who are educationally deprived.rnIn addi tion tornthis, Muslim household heads are found · to have high preferencernfor their children to attend Koran school than governmentrnschool, and there is high Koran school attendance among Muslimrnchildren.rnEconomic conditions are the main factors determining householdrndemand for schooling.rnFamily weal th and distance from schoolrnhave high influence on school participation, while householdrnheads'rneducationalrnlevelrnhasrnweak relationrnwi thrnfamilyrneducational consumption.rnBasedrnonrnthernfindingsrnobtained,rnthernfollowingrnrecommendations are made.rnFuture enrollment in most of thernschools must be preceded by the construction of some additionalrnclassrooms, or operating with double shift is another option.rnIn order to attract more children to school and to reduce drop-rnout, the present full-day school time need to be reduced to onernsession and change of school schedule according to localrnsituation are required.rnOther than this,rnimprovement ofrneconomic condi tion of the society, persuading communi ty aboutrnthe value of education and ini tiating li teracy program arernsuggested to increase school participation.rnTo increasernfemales' school participa tion, the recrui tment and training ofrnfemale teachers in primary schools and giving priori ty forrnfemales in job employment are suggested