Abbay valley of Däjjän Wäräda to 2000s. The study covers from 1940s to 2000s. Like most areas of the Amhara National Regional state, the rural population of the study area consists of about 85% of the total population of the Wäräda. The main economic source of the people of rural area of Däjjän Wäräda has mainly come from agriculture. The people, who are subsistencein their livelihood, depend on small farms. In the last decades, though there were studies at national level, no historical study has yet made on the history of agriculture of Däjjän Wäräda in general, and the Valley section, in particular. In addition, the study and scholarship on the interdependenceof the valley agriculture with the changing environment, government policies and population pressure has yet to come. Therefore, based on primary and secondary sources, the main purpose of this thesis is to examine, the nature and issue of agriculture and settlement in the fragile environment of the valley, including land slide, land fragmentation and degradation, the role Abbay in the political economy of the people. In addition to the interviews, I have made in the valley, Lumame and Däjjän, I have also consulted National Archives and Library agency, Debre Markos Archives Section and DäjjänWäräda Agriculture office.