1. Research BackgroundIn the contemporary world, good governance has become a buzzword and it is also frequently mentioned as an element of economic growth and poverty reduction. As the researcher learned from the literature, the use of the word "good governance" first appeared in a 1989 World Bank (WB) report on sub-Saharan Africa. As noted in the AfDB (1999), a 1989 World Bank report on “Sub-Saharan Africa: From Crisis to Sustainable Growth” raised the issue of governance. It is as a result of this report that the idea of ​​good governance is frequently pronounced among aid agencies and countries in matters of development and aid conditionality. As Grindle (2010) well expressed, for the millions of people around the world who live in conditions of public insecurity and instability, corruption, abuse of rights, failure of public services, poverty and inequality, good governance is a powerful beacon of what should be. Now, nations in developing countries, including Ethiopia, are striving to achieve good governance at all levels of government. In Africa too, good governance is the subject of widespread attention; African governments have in fact implemented various strategies to promote good governance. Ethiopia is no exception to this consensus and the GOE has therefore recognized the importance of good governance in achieving sustainable development. The practice of good governance principles in urban areas is also becoming a major concern of countries in Africa and in particular Ethiopia is concerned about the prevalence of good urban governance in cities. According to UN-HABITAT (2009), today more than ever, urbanization has become an essential element of business in every country in the world. Due to the growth of ...... middle of paper ......ce in the municipal administration has not yet been investigated. Given that good governance has become a major aspect of development assistance (Grindle, 2010), it is important to see the practices and hindering variables of good governance. This will help reinforce positive practices and recommend solutions to mitigate bothersome variables. It is therefore this gap that motivated the researcher to undertake this research. Finally, the research will address the following fundamental questions: • What is the level of understanding of good governance among government officials (public officials) and local authorities within the municipal administration? • To what extent are the principles of good governance put into practice in the BTMA? • What are the main variables hindering good governance and what could be a possible and appropriate solution that would help promote good governance in the BTMA?