capital and then a district capital. Various offices and public services were set up. In 1945 Bahir Dar was raised to the status of a municipality. In the early 1950s, it was considered to be the best potential site for the construction of an alternative capital of Ethiopia.

During the 1960s and 1970s, Bahir Dar grew rapidly, being the capital of the eponymous awrajja (county) in the Gojjam province. The central government developed the city as a market and transportation