In the current developing world, rapid urbanization is driving the expansion of informal settlements and the transformation of rural land in peri-urban areas. In Ethiopia, peri-urban areas are rapidly transforming as urban development expands into rural areas. Although peri-urban land is subject to existing rural-urban planning, investment, expropriation, compensation, and regional rules, Ethiopia lacks a coherent and integrated legal framework governing the transition between rural and urban landholding and administration. The current legal and institutional systems are fragmented and not well coordinated, which makes it difficult to manage land-use changes and protect peri-urban landholders’ rights. This article deals with the laws and governance practices that regulate how peri-urban land becomes part of urban areas in Ethiopia. Using doctrinal and empirical legal research methods, it examines federal and regional legal frameworks and governance in selected regions. The findings show that while current laws cover key parts of peri-urban transformation, they lack clear and coordinated procedures for transitions and do not clearly define institutional responsibilities. This fragmentation causes land tenure insecurity, informal land deals, administrative confusion, and challenges related to compensation and livelihood restoration, particularly for landholders. As a result, there is a need for a clear and more unified approach to managing rural-to-urban land transitions.
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