In developing countries like Ethiopia rural-urban migration affects development in both urban and rural areas. As such, this study aims at establishing the major causes and consequences of the movement of people from rural to urban areas. To achieve the objective 500 migrant household heads were selected randomly from three kebeles of the town. Both primary and secondary data were employed and were analyzed both qualitatively and quantitatively. The study revealed that migrants came to Woldiya in search of employment and to utilize urban services and education. Hence, the out flow of economically active people from the rural agricultural sector has a negative effect on production in the areas of origin and the receiving area now experiences problems such as a shortage of housing, unemployment, increasing cost of living, lack of access to social services, Therefore, to mitigate the problem of rural-urban migration is launching of integrated rural development policy.