Now a day, In Oromia regional state urban centers are more of potential of economical and political power. The reason behind is the value of land. Urban Land management have to be well treated in order to change the natural value to developmental value through consistent manner. Challenges may be facing through delivering, developing and managing the land and related infrastructure. Unless the management have been treated accordingly land speculation may created and wealth distribution become unfair. Burayu town is one of Urban center that face the challenges. Thus more attention should given to institutional capacity, land information system and practices of good governance in the urban. in addition, consequences like speculation and informal settlement are the major one. In order to overcome these capacity building, introducing computerized information system, shortening the land delivery procedure and bureaucratic and designing mechanism for implementing good governance are out of some of the recommendations given.