In recent times, a growing body of research has drawn attention to the changing interface and interdependence between urban and rural spaces in Africa. This includes studies on physical, environmental, socio-demographic, economic and other transformations in the peri-urban zone. However, little is known about how residents of peri-urban communities adapt their livelihoods to these transformations. Using the case study approach, and by applying the sustainable livelihood framework as an analytical tool, we have explored the livelihood strategies adopted by the residents of four communities in peri-urban Accrain response to the city’s physical expansion. We find that urban growth has differential effects on peri-urban livelihoods, thereby creating winners and losers. Some residents, by reason of their possession of, or control over, various forms of livelihood assets, are able to utilize opportunities offered by urban growth to devise livelihood strategies to enhance their wellbeing. Those who suffer adverse effects are mainly resource-poor farm households who, apart from not having the wherewithal to take advantage of opportunities created by urban growth, lose their farm-based livelihoods as a result of the conversion of land from agricultural to non-agricultural uses. We therefore recommend that local government authorities should incorporate peri-urban livelihood issues into their planning activities.