Against the background of an interpretive theoretical framework and historical perspective of development, this study places a particular emphasis on development in the Ethiopian context. Thereafter, the investigation shifts more specifically to examine the roles of CBOs in terms of their contribution towards development, focussing on the selected case study area of Gubre, in Ethiopia. The analysis subsequently assesses the nature and extent of community participation in terms of development initiatives as well as identifies the potential and challenges of CBOs. Within the context of abovementioned analysis, the study finally brings in to focus general observations gained from the investigation and provides recommendations to policy makers and other stakeholders in the development arena.