This paper has investigated how financial releases and creation of care-taker committees by Anambra state government influence social conflicts between Traditional rulers and Presidents-General of TUs in some communities. About 524 respondents given the quantitative tool for this study were drawn from members of TUs within the three communities used for the study: Nri,Isi-agu and Amansea. Qualitatitve data were also derived for the study from: victims of TU conflict, members of the vigilante, government officials involved in resolving TU conflicts and community leaders. Findings showed that the state government is a pronounced source of social conflict between the institutions. It does that through her financial releases; creation of care-taker committees and fermenting conflict even in peaceful communities that are seen as her political opponents. Government officials associated with fermenting TU conflict should be prosecuted (Word count: 131).