The paper tries to analyze the dilemmas revolving around one of the regions of Ethiopia named Southern Nations, Nationalities, and People’s regional state which I here onwards refers SNNPRS. The region is comprised of some 56 nations and nationalities some of which are currently demanding their own regional states. Due to such demands of the public and internal problems of the region, the government has now decided to divide the region into two regions. Despite the decision, a swift transition has never materialized. In this research article, therefore, the causes of the demise of the region, challenges that are hindering swift transformation, and the polarized interests of various groups are discussed. As far as the Wolaita people are concerned, the paper analyzes the interest of the Wolaita people, one of the indigenous people and historically powerful nations. Methodologically, the paper has made use of both qualitative and quantitative methods. A descriptive research design was used to analyze the public demands. Moreover, survey method is used to grasp the necessary quantitative data. Using a qualitative research approach, historical and political preludes leading to the crisis are figured out. Accordingly, key informant interview and focus group discussion was conducted. The finding of this article shows that the government’s proposal of forming two regions instead of the old SNNPRS has got strong rejection. Here, 341 respondents or 93.1.% opted to form an independent region of their own, 17 respondents or 4.6% preferred to sustain SNNPRS and 8 respondents, or 2.18% supported the government’s proposal of forming multiple regions instead of the current region, SNNPRS. After a series of interviews and group discussions with informants, I come to the conclusion that being the capital city of the region that is supposed to be formed has got the paramount interest of the public.

Keywords: Regional State, Southern identity, historical rivalry, administrative capital