WHEREAS, the proliferation of unplanned urban centers needs to be regulated and guided by sound and visionary urban plans to bring about balanced and integrated national, regional and local development;

WHEREAS, it is vital to create a favorable condition for public and private stakeholders to fully participate in the process of urban plan initiation, preparation and implementation on the basis of national standards;

WHEREAS, it is necessary to regulate the carrying out of development undertakings in urban centers, contemplated both by public and private actors so that they will not be detrimental to the general well being of the community as well as the protection of natural environment;

WHEREAS, the existing laws on urban planning, due to their enactment by the unitary system of government, lack in conformity with the prevailing spirit of decentralization and therefore it has become necessary to replace them with a comprehensive legislation which takes into account the federal structure of government and the central role of urban centers in urban plan preparation and implementation;

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: