The area of Yirgachefe town is 1133 ha. The location where the toen was founded has undulating topography, while its altitude is 1500- 2000m above sea level. The town is located in an area having Woinadega climate and its Mean Annual Temperature is 18º C. January is the hotest month while July and August is coldest month of the town. Data from the town administration shows that the Mean Annual rainfall of the town is 1890mm.

The principal natural constraints of the town are: lack of unpaved local roads; the drainage system of the town being under construction; absence of street lights; lack of proper liquid and solid waste management system; pollution of rivers in the town; absence of recreational and greenery areas; shortage of shading trees; poor development along the main roads; poor expansion of standardized service providing institutions; absence of educational institution (college); existence of slum areas, poor fencing of houses, low expansion of Micro and Small Scale Enterprises, low effort to promote and attract investment opportunities; absence of organized market centers; weak revenue collection capacity and limited intra-town transport services.