Today one of the major issues in the world that plays a role for development is proper implementation of good governance. This study assesses the implementation of good governance in the land improvement and management: in the case of D/Markos Municipality. Particularly, the study assesses the implementation of good governance from the perspective of transparency, accountability, participation, effective and efficient service. The study was conducted using key informant interview, in-depth interview, FGD, related document analysis and observation to gather data. Moreover, analysis of both primary and secondary qualitative data through case study research design and qualitative research method were used. Both primary and secondary qualitative data were analyzed qualitatively by using themes. The study finding indicates that the municipality land improvement and management institution processes of implementing good governance related to transparency, accountability, participation, effective and efficient service was found at the low level. Much is left to be done. The major challenges that hindered the implementation of good governance are corruption, the lack of proportional number of service users and service providers, lack of skill and experience of service providers. In addition to that the small office size to apply transparency and accountability in the processes of implementing policies of urban land usage is hindrances of good governance implementation in the land management and improvement institution. Finally this thesis recommended the urban land policy makers to Prepare urban land using policy relatively permanent to reduce confusion of both the service users and service providers. The service provider institution should recruit qualified man power related to the kinds of services in the institution and provide short term training to update the skills of service providers to adopt the new policy. It has also to prepare proper institutional plan that clearly states the mechanisms of proper implementation of good governance principles qualitatively. Moreover, the institution should establish mechanisms of preventing corruption desires of both service providers and service users, try to increase the number of service providers proportionally enough to the number of service users. Finally, the research recommended the municipality land improvement and management institution for changing the arrangement of the office into three and above with related service to reduce the problem of small office size to increase participation and transparent service. The researcher has also recommended to other researchers to conduct research with these pillars of good governance and other good governance principles to assess the implementation of good governance in the public service providing institution. Keywords: good governance, municipality, land improvement, management, accountability, transparency, participation, effectiveness and efficiency, consensus oriented decision Chapter One: Introduction