This book has tried to investigate the challenges and opportunities of good governance by taking the case of Addis Ababa City Administration. The findings revealed that a rubber stamp Council,lack of impartial media,insufficient decentralization efforts, patronage in the civil service, absence of vibrant CSOs,rampant corruption,secrecy in the conduct of the affairs of the City, immature participation and inefficiency and ineffectiveness at least in the provision of some social services are serious challenges to entrench sound governance in the City. Favorable constitutional arrangement and enabling City Charter; the attempt to introduce reforms at the civil service; the effort to equip bureaus and offices in facilities and human power; the recent decentralization process, participation of mass based organizations in decision making and success in providing some services are assets to further consolidate good governance. The study concludes that overarching government control of all maters and lack of space for others results governance to be weak, fragile and slight though some improvements are observed.