This study was conducted Lo assess and evaluate in,1it11rional performance in the study vii luge; with regard IU communal gnit:ing land and produce eight justif.ablc answers 10 Osumn's design principles and to check whether the common land users arc willing 10 form robust institutions for the better management of communal grazing Ian~ and solve the prob lcm of overuse of 1 hcse resources. Accordingly. the important data were collected from the noth-sooth and cast-west transect walks, fror1 a survey of' randomly selected common land rscrs, Irorn interviews with key informants, discussions with rM~. KLAUl'. KA and Kebele Social C'ou11, from questionnaires given to El'LA\JT and CPL\UA, from personal communications with some important Individuals and finally from the feedback meeting The generated dnta were presented i·1 tables and percentages. The result of all the collected data were then analyzed based both on quantitative and qualitative methods in a way that can achieve the objective ofihc.srudy. I'hc grazing land during the Derg regime was demarcated as a communal grazing land; however. however, the substantial portion of' the gra1ing land was given tu Peasant producers' Cooperative Association is subdivided to be used ror culrivation. After the downfall cf the Derg regime, the area which was given 10 the Peasant producers' Cooperative Association was orought back to a communal grll7..ing land. However. as rime went on. tl.e size of the communal grazing land has become reduced due to a m.rnber of reasons mainly encroachment and frequent land redistribution causing grazing lands to be changed to crop lands. Moreover, the ever-increasing human population is the root cause lilr rhe .overuse of the grazing land. Hy recognizing the s.tuarion, the people concluded verbal agreement to subdivide part of the communal grazing land as oxen gra7.ing area. The traditional institution (oxen grass committee) after establishcd , by the users have succ<i'Ssf'ully protected access each for a period of seven months and half to reduce overuse of the grazing land. Moreover, the people appoint one guard for better protection of the oxen grazing area. Besides, some eight years ago the people further agreed to subdivide the res'. of the communal grazing land into permanent mid seasonal-all-livestock grazing areas. The seasonal-all-livestock grazing area is allotted for nil types of livestock; however, access is allowed only for four and half months of' each year. Two guards are appointed for the scasonal-all-Iivesrock grazing area. However. the agreement has not yet considered a wry important issue regarding the restriction i11 the quantity of resource 11:1it robe extracted from the oxen and seasonal-al l-livesrnck grazing areas. The permanent grazing area is in u state of open access. Nobody includ:11,; nun-members is prohibited from using (he grazing area at any time with unlimited number of livestock. Currently some individuals from the neighbor kehd~ are usinj! the grazing land. As a result, even at the potential season of the year (end of rainy season) the grazi n g land is extremely overused. Due to differences in the management measures between the oxen, seasonal-all-livestnck and permanent grazing areas, there arc spatial ditforcnces in the grassland ecosystem. With