A cross sectional study was conducted in Gambella, Ethiopia. The study revealed that multidimensional causes are uncovered for the relentless inter ethnic conflicts in the region. Some causes are historical while other dimensions are intensified in the new ethnic based Federalism. Three major causes are responsible for the Anywaa-Nuer Conflicts. Competing livelihood strategies and domination in population number and language are among the causes. Struggle for over regional power is another factor. Ethnic identity in regional political struggle is intensified under the federalism structure and taken as inclusion/exclusion strategy of getting upper hands with the argument of 1st level citizen versus majority-minority status in the area. The 1980s state sponsored resettlement program of highlanders in the area brought hostility of the locals over the settlers. In the Federalism structure, regional ownership and alliance induced conflicts are also noticed between the Anwaa and the Highlanders. Over centuries, the Anywaa-Nuer conflicts were negotiated through mediators to pronouncement of rules. Recently, dispute management is politicized and hence local efforts are gradually eroded.