In Ethiopia, the lack of adequate shelter provision has lead to a rapid deterioration of living conditions for the urban poor. To ameliorate this situation will require changes in the structure of public expenditures, and the development of alternative mechanisms for housing delivery. The magnitude of current and likely future housing problems in urban areas was estimated. Programs recently employed to resolve these problems were then documented and alternative approaches suggested, that better meet the needs of the urban poor. What emerged was an awareness that efforts should not be directed solely towards conventional low-income housing programs. Instead, a full range of environment strategies should be considered including: "site and service" schemes, housing rehabilitation and, institutional programs aimed at providing needed support for more autonomous provision of housing.