One of the biggest difficulties facing Ethiopia's urban water utilities is the reduction of excessive water losses. Water supply inconsistency and imbalanced distribution in Hosanna town is a major issue for the town's people. Despite the fact that the town has more than six sources of drinking water, considerable losses in the distribution system, along with an alarming increase in urbanization, have a significant impact on the supply shortfall. The major goal of this research was to determine the level of water supply coverage and distribution system losses. The hydraulic performance of the water supply distribution system was assessed using WaterGEMS. The existing distribution layout, Hosanna town administration master plan, and geospatial data were used as input data for WaterGEMS. The free water audit software from the American Water Works Association was used to assess the water loss. Financial and operational performance metrics, as well as the infrastructure leakage index, were used to assess total water losses and non-revenue water. The volume and cost of water lost and non-revenue water are reported in terms of volume and cost. The town's water supply covers 60% of the population, and the average daily per capita use is 29.02 liter. The data demonstrate that the GTP-2 aim of water supply coverage was not met. Water was lost from the system at a rate of 29.48 percent of total input water, including both apparent and real losses. The financial performance indicator for non-revenue water was found to be 30.73 percent of total generated water, including unauthorized use, apparent losses, and real losses. The infrastructure leakage index, which measures the efficiency of the distribution system, is 2.50. The hydraulic model was calibrated using observed pressure data as well, and the resulting coefficient of determination (R2) was 0.997. According to the findings, the performance of Hosanna town's water supply distribution system is quite poor.