Ethiopia i, current ly facrng challcngi11g problems. rnngillg from those induced by environmental crises to those caused by demographic and scciu-economic coustrairus which advcrsr-ly Rffoc.1 pcoples ' production system. Th" country is generally characterized by extreme poverty, continued and hig.1 population growth rate, and severe envirourncntal dcgrailauon. The performance of ngri~ullun:, which provides livelihood for 85% of the country's population. has been pnor over I he lasr rcw decades. II has been realized lh:il one 11 I' the root causes of these prob lcms is poor and u 11sus·~111,1 blc lund 111a1H1)!.c-rnen1 p1 :-u;I iL·c,, EfTnlls iv c11J1;111cc: 1lic quality of rural I ife must include improvements to :1gricul1un1! production, em ploymcnt. in frns1 ructure, and env i romn cnt. The success of 1wojc<:1 s lo improve 111ral areas will depend I<) :i large extent on ht>w they 111ldrcss tl:c grcaL numhe- of ,111;111 and fbgme111c1l fa1 ms To address the problems of agriculture and land issues efforts ll'Hde so far by diucrcni guvernmenta! N:ld non-governmental orr~ni7;JlillllS have been largely unsuccessful. This ~.ilb fill' the current 1"t11~1 J,111,J udministnuion mid use l3W~ at federal and regional levels 10 rackle th~sr problems by linsudng security of use nghl over 1"<11 properties. This masters' thcsls focuses on assessing the characterlsrics ot' properly units and the importance or incorporaung property formation n., n11 instrument of rural development in F.1 hiopin, 11 suggests rl:AI while some articles arc issued here and 1hcr~ in li'l' ¢1i11ca1l rurul laud adminisuntion nnd use laws, u scpurate p1nptlrly (orruutiou Jaw aru l clearly staled cadastral procedures sho rld be declared very HH>11 I<> r~ali7<' Iii<' nhj1Ttiw~ o: lard administration mid use laws, F\u 1!Jc1 11011; ll')!.istLmd properties should undergo Ii nely and regular updntng.