As a result of rapid increase in population and urbanization Municipal solid waste (MSW) management is becoming a hot cake in urban areas. Waste collection and transport (WC&T) constitutes a large fraction of the total municipal solid waste (MSW) management costs worldwide. In Bahir Dar currently this may account for 70-100% of the total MSW costs, most of it being spent on salaries and fuel. It is therefore crucial to improve the WC&T system through routing optimization. However the manual analysis of urban solid waste management is very tedious as it involves a huge data and statists. Hence it demands computerization of system. Geographical Information System is a tool introduced to overcome this limitation and make waste management planning easy, efficient and can also be implement quickly. It will reduce the waste management work load to great extent. Geographic Information System (GIS) technology provides an advanced modelling framework for decision makers in order to analyze and simulate various spatial waste management problems, including waste collection. In this thesis project a methodology for the optimization of the waste collection and transport system, based on GIS, was developed. With the GIS technique, optimum routes were identified which found to be cost effective and less time consuming compared with the existing run route. Furthermore, fuel consumption and associated exhaust emissions comparison between the optimized routes and existing waste collection route was also done. Results demonstrate that the optimized routes provided 18% saving in total waste collection traveling distance and 17% savings in fuel consumption. The estimation of Greenhouse Gas (GHG) emissions for optimized route was made and compared to estimated emissions of current route