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The provision of essential urban infrastructure and services for theexpanding population is a persistent financial challenge for many of therapidly expanding cities in developing nations like Ethiopia. The land leasesystem has received little academic attention as a means of financing urbaninfrastructure in developing countries. Therefore, the main objective of thisstudy is to assess the contribution of land leasing in financing urbaninfrastructure and services using evidence from Bahir Dar city, Ethiopia.Primary and secondary data-gathering techniques have been used. Descriptivestatistics and qualitative analysis have been adopted. The results show landlease revenue is a dominant source of extra-budgetary revenue for Bahir Darcity. As evidenced by Bahir Dar city, a significant portion of urbaninfrastructure expenditure is financed by revenues from land leasing. However,despite the critical importance of land lease revenue to investments in urbaninfrastructure, there is inefficiency in the collection of potential leaserevenue due to weak information exchange, inadequate land provision for varioususes, lack of transparency in tender committees, and the existence of poordocumentation. Our findings suggest that Bahir Dar City needs to manage leaserevenue more effectively to increase investment in urban infrastructure whilegiving due consideration to availing more land for leasing.  Keywords: urban, land, revenue, inefficiency, lease, financing, Bahir DarCity

Financing Urban Infrastructure through Land Leasing: Evidence from Bahir Dar City, Ethiopia