Abstract
Peri-urban land which has been used predominantly for agricultural purposes and held by local farmers is a target area for informal settlements in Ethiopia. An increasing number of people try to solve their housing needs by getting a plot of land informally in the transitional peri-urban areas. The purpose of this study is to explore the principal actors involved in the informal conversion of peri-urban agricultural land into urban built-up property. This study is also aimed at demonstrating the role of non-state institutions in facilitating informal acquisition and development of peri-urban plots. Both questionnaire and document analysis were the main sources of data for this study. The result of this study indicated that traditional social institutions played a significant role in processing peri-urban informal settlements and stabilizing land related conflicts by social sanction measures. The study has also found out that the process of acquiring a plot of land from peri-urban areas passes through its own stages which mainly start with identifying a plot for sale and ends with the confirmation of traditional letter of agreement signed by transacting parties without legal ground to do so.