The history of urban development in Ethiopia and Mätämma area has deep roots in the past. However, no attempts had made to reconstruct the history of towns in Mätämma area and Gända Wuha town. The main objective of the study is to reconstruct the history of GändaWuha town from its foundation up to 2016. There are four major factors for the foundation of GändaWuha town. Firstly, Voluntary peoples who inhabited the area since 1965 because they had facilitated the ground to pull the local people to inhabit in the area. Secondly, the development of agriculture in Mätämma area motivated interests in the establishment of small towns in the area. Thirdly, Refuges from Sudan camped in the town and they began petty trade that brought frequent contact among the people of the surrounding area and played very important role to attract the inhabitants of the surrounding area to built huts in the area what is now GändaWuha. Furthermore, war between Därg and EDU in Mätämma area and the subsequent displacement of the people to GändaWuha was crucial for the foundation of the town in 1977. Due to the war and the subsequent destruction of the capital of Mätämma wäräda, Yohannis town, transferred to GändaWuha town in 1977. However, the group of expert selected from Chilga awrajja agreed that GändaWuha was strategically very important because it was situated to the center of the wäräda and they decided GändaWuha to be the sit of the Mätämma wäräda in 1981. During the Därg regime, progressive developments had seen in the area of education, health, road, airline, and other facilities. Hence, GändaWuha took the feauture of a modern town during the Därg regime. However, after the change of government in 1991, the name of the town changed to Šähädé but the town continued to be a seat of the Mätämma wäräda, with the name Šähädé until 2005. In that same year Mätämma wäräda people’s council renamed the town again to GändaWuha after the main river of the town, GändaWuha River. Therefore, GändaWuha was an ancient name of the town rather than Šähädé. In the mean time, the town developed in to sub-municipality and led-municipality and later GändaWuha got the status of town administration. The development of the town showed a relative progress after it became a town administration in 2008. Like other towns in the country, GändaWuha is the home of diverse ethnic and religious groups who lived harmoniously. Economically, the town showed progresses since its foundation. However, rapid economic progresses were seen after it became a town administration, which in turn enhance infrastructural development of the town. Therefore, the thesis tried to fulfill the gap in the study area in the period