Lands one of'the must important resources in any society that need to be managed for heuer and sustainable development outcomes. However, the peri-urban land surrounding the city of 11atir 001 is increasingly coming under pressure from peri-urbani~.ation and tenure transformauo». The comperition over surrounding agricultural land for residential, social ,m kc, infrr.structur{'. investment and other urban purpose with the expense nf the livelihood ilf !he pcri-urban local people is increasing at an alarming rate. Compared to rural and built up urban (city) areas, pcri urban areas experience by far Jess stable and more vibrant s tlll\l•Ons that peasant holders -esiding there n111y e~pcricncc declines in abiluy to susunn ll\111cr;hip andzor use of their holdings and maintain their homes there, let alone 11cc,1n1n·oda1ing the young.l;!r peasant generations claiming for the lanes. Ihc periphery of 11ahir 1):-11 is a panicula- case requiring aucntlon and invcsugatiou as la:ge number ol' small holder farmer> is nov. lo;ar.g their farn• land. Fanncrs· llclds in the pcriphcr) di' the town a~ expropriated and rural residents are brought within the hn1. ndaries or the city .LJmini,1nuion. Even though. ra:m111J1 and production 01· crops i> the 111a n income source fer L'ic lucal pcri-urban people. they arc giving sway their land and livelihood tu urban dwellers anc investor,. lheretore. the aim of this study lS lo mvesrigatc the effect" or the transfornuuon of tenure from possession right to urban [and lease tenure on the livelihood oftbc dlsposscssed tanners tn 1•icini1y ur Bahir Dar City and 1.0 investigate the nature and pattern of peri-urban land tenure. To achieve this aim. this study was based on both primary and secondary data galhcreJ by field sur vey: interviewing of key informants from the community and ofllcials in the city administration and agricultural office and through questionnaires that admims:ered 10 sample dispossessed household heads. The analysis was made by both qualitative dcscrlptio» ind quantitative dcscri pnve statistics. Based on the dam collected from d fferent sources by different instruments :md after analysis was made the researcher has made 11 general conclusion that tenure change and transfer uf land 10 urban residents and investors lrom rannint;! tamilics has a ncg*1tivc ctlcct on the n1ujoril} oft he peri urban agricultural ct1m111u11itics. I he results ot stud) i 1 general. iudic.ucd lhill tenure iranstorrmniou in the area is not rur1h:ipato1'). nol reh<1hili1ati\.l' arJ have mo(ginnlized the rannin~ families l·or this general concl.rsion a number of ;ugge~tioni' hits \Uggcstcu u!-> apprupriatc arces ,,r lucus for tbc future action. advocacy nnd research. IJa5cJ {\11 eirpmcal r, .. '\uh~, polic: issues. insuuui .. inal sc111ng up- and plann111g n\cthndolu~i!i:~ are the core )uggest1on areas that can al h:~1:,l minimivv th .. · n:·,ea1ivc consequences ol tenure trunsfonnation and pcri-urbm1i1.a1ion.