Unlike many other towns of Ethiopia; Arba Minch was fortunate to have land use plans right from its establishment in the early 1960s. However, its implementation in accommodating land needs of the diverse groups was limited. This was due to the capacity constraints, vague institutional and legal frameworks, and top-down planning exercises with less regard for the wider community of the town. In effect, informal land transactions, expansion of squatters on topographically unsuitable parts of the town, illegal occupation of land, land speculation and land use conflicts appeared to have been the major problems of land management in the town. As Arba Minch has opportunities and challenges in the years to come, these all call the need for all inclusive, dialogic planning with critical but respectful exchange of ideas to produce ideally consensual outcomes.