The sudden establishment and eventual growth of Gelan town brought many urban planrnimplementation challenges that need to be investigated to minimize the spillover impacts ofrnurbanization in Gelan town. Gelan town is established after the establishment of somerninvestments and has been grown by displacing and affecting the livelihood of local farmers. Thernoverall impacts of urbanization on the local farmers requires to look into the local ecologyrntowards which Gelan town is expanding, role of investments operating in the area, the plan thatrnguides development and future expansion.rnThis research is an attempt to investigate the challenges of urban plan implementation in Gelanrntown with a particular emphasis on the livelihood of farmers, role of investments of the town tornthe local economic development and ground water resource of the area. Accordingly, to look intornthe issues I have used both qualitative and quantitative data collection and analysis techniques.rnData collected through interviews, questionnaires and field observations were analyzed andrnpresented through discussions, tables, figures and maps.rnThe findings revealed that most investments and recreational centers before the establishmentrnof Gelan are located along highway and occupy large blocks that hinder accessibility of land usesrnat the back. The ground water catchment area of Akaki partially within the planning unit ofrnGelan town. Intensive constructions taking place in the area is believed to have a negativernimpact on the ground water recharge of the area from where water is supplied to the populationrnof southern Addis Ababa. The research also found out that farmers whose livelihood is based onrnfarming are forced to change their livelihood strategies by renting farmland using moneyrnobtained through compensation. As a result, the livelihood of farmers is negatively affected.rnThe analysis of Gelan town structure plan showed that the plan was implemented poorly andrnlacked plan evaluation, monitoring and updating taskforce. As a result, irregular and irrationalrndevelopment as well as incompatible land uses are common along Addis Ababa-Adama highwayrncrossing the town