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Peri-urban areas in Ethiopia like that of other African countries are places where much of urban growth is taking place and as a result the competition for land between agriculture and nonagriculture (urban built-up property) is intense. It is there that new properties and property rights emerge and at the same time the existing traditional or customary rights may also disappear or dissolve. This study has attempted to assess and demonstrate the process of built-up property formation process in the transitional peri-urban areas of Ethiopia. So as to achieve the purpose of the study analysis of survey results were employed to figure out the process of peri-urbanization and new property development and formation process in Ethiopia. This study has also reviewed about contemporary literatures on rapid peri-urbanization and the resulting emergence and formation of new urban built up property rights process both through the formal (legal) system and informally outside the legal framework. Finally, the findings of this study have shown that both formal and informal ways are equally important in the process of converting peri-urban agricultural lands into urban built-up non-agricultural properties.