Soil loss by runoff is the most serious problem in the world today because it isrnthreatening agriculture and also natural environment. It can cause in lowering thernproductivity of a land temporarily or permanently. In order to reverse such kind ofrnproblem assessing the level of problem and finding solution at watershed level isrnnecessary. Accordingly this study initiated to evaluate the soil loss and runoffrnpotential spatially and temporarily in Keleta watershed. In order to achieve thisrnpurpose SWAT computer model integrated with GIS and Remote Sensing wasrnused. Accordingly the runoff and soil loss simulation were done by dividing thernwatershed into twenty sub-watersheds. One hydrological response unit wasrnassigned for each sub-watershed. The simulation result showed that runoff andrnsoil loss was increased through out the simulation period. This situation wasrnstrongly correlated with the increasing trend of rainfall. Spatially the runoffrnamount was correlated with the type of soil and land use system. ChromicrnVertisol and Eutric Cambisol with cultivated land use were characterized by highrnrunoff potential. The soil loss rate was correlated with type of soil, slope gradientrnand land use system. Higher soil loss was observed from Eutric Cambisol, sloperngradient greater than 25% with cultivated land use system. Prioritization of subrnwatershed was undertaken based on the degree of soil loss. Remedial measuresrnwere recommended based on the level of priority and type of problem.