  The nature of the emergent phase near a putative quantum critical point in
the bilayer ruthenate Sr$_3$Ru$_2$O$_7$ has been a recent subject of intensive
research. It has been suggested that this phase may possess electronic nematic
order(ENO). In this work, we investigate the possibility of nematic domain
formation in the emergent phase, using a phenomenological model of electrons
with ENO and its coupling to lattice degrees of freedom. The resistivity due to
the scattering off the domain walls is shown to closely follow the ENO
parameter. Our results provide qualitative explanations for the dependence of
the resistivity on external magnetic fields in Sr$_3$Ru$_2$O$_7$.
