Abstract. Urban malaria is a growing problem in Africa. Small-scale spatial studies are useful in identifying foci of malaria transmission in urban communities. A population-based cohort study comprising 8,088 individuals was conducted in Adama, Ethiopia. During a single malaria season, the Kulldorff scan statistic identified one temporally stable spatial malaria cluster within 350 m of a major Anopheles breeding site. Factors associated with malaria incidence were residential proximity to vector breeding site, poor house condition (incidence rate ratio [IRR] = 2.0, 95% confidence interval [CI] = 1.4, 2.9), and a high level of vegetation (IRR = 1.8, 95% CI = 1.0, 3.3). Maximum (IRR = 1.4, 95% CI = 1.1, 1.9) and minimum daily temperatures (°C; IRR = 1.3, 95% CI = 1.2, 1.5) were positively associated with malaria incidence after a 1-month delay. Rainfall was positively associated with malaria incidence after a 10-day delay. Findings support the use of small scale mapping and targeted vector control in urban malaria control programs in Africa.