The rural labour force in developing countries has been growing rapidly, but employment opportunities are not keeping pace. Hence, nonfarm employment must expand if deepening rural poverty is to be avoided. This is even more important for resettled households who are faced by numerous challenges in adapting to new environments which causes major changes in their livelihood activities. The probability of a households decision to participate in the nonfarm sector in a conflict based resettlement scheme is influenced by age, possession of a technical skill, number of dependents, size of cultivated land, wealth and time taken to walk to a water source. This paper recommends incorporating vocational training centers in resettlement schemes, promotion of primary production as a foundation for wealth creation and incorporating good water supply so as to reduce the time taken to walk to a water source.