This paper presents a case study from the Gambella region of Ethiopia, where large-scale land
concessions shape the resource system and necessitate adoption of new institutions. Private
investors are free from water charges, and have the right to take over already built irrigation
structures such as dams or main canals. The Alwero river in Gambella, located in the BaroAkobo
river basin, is one of the key sources of water for indigenous rural communities who
practice fishing, pastoralism and shifting cultivation agriculture. New water users are
increasing in number, one of them being Saudi Star Agricultural Development Plc., who is
currently developing a rice plantation on 10,000 hectare along the river. There are no
environmental controls or limits established on the company’s water use. Neither are there
any mechanisms for monitoring the effects of increasing water use on users, the Duma
wetland, and the wildlife. The adoption of a comprehensive land use and river basin plan
would be important to avoid the escalation of resource conflicts and for the future
development of the region. The analysis looked into how the governance of water and land
resource allocation for agricultural investment challenges and influences the complex social
and ecological system in Gambella.