The aim of this study is to investigate the opportunities and challenges of local development plan implementation in the case of Enewari town. To achieve the objective of the study mixed research approach with descriptive and explanatory research method was applied. Primary and secondary sources of data were used in this study. Open-ended and close-ended questionnaires were distributed to 210 respondents that were selected using simple random sampling and a purposive sampling technique. To analyse the collected data, combinations of quantitative and qualitative analysis methods were employed. Qualitative data were analyzed through narrative methods and the quantitative data were analyzed by using descriptive statistics, correlation and regression analysis through STSTA version 14. The findings of this study showed that for upcoming vigorous town development and to prepare new town plan (detail project plan) based on resources agricultural production, road network, rural urban linkage, tourism, and construction material are the major precious resources. On the other hand, based on finding, Informal settlement, weak organizational set-up, prevalence of huge unemployment, absence of public participation, lack of land, and lack of investor are the major impediment for town development plan implementation to incomplete in recommended time. The major recommendation is that the town administration should devote much effort on addressing issue related to challenges (informal settlement, weak institutional set up, prevalence of unemployment, land supply, attracting investor, and public participation) and also redesign institutional arrangement, establishing rule and guideline related how to reduce or eliminate fully an informal settlement, how to maximize the amount of investor, and create public participation opportunity to enhance implementation of urban development plan in prearranged period.