The study area lies in the central part of the country, 45 km west of Addis Ababa, inrnOromia National Regional state. It is a sub catchement of upper Awash drainage basinrnwith a total surface area of 515 km2. Currently the need for water is highly increasing duernto increasing population, irrigation practices, and agricultural based industry (particularlyrnflower farming) in the area. Thus the main objective of this research is to study the statusrnof water resources potential in the catchement. It is generally characterized with twornmajor types of land forms: volcanic ridges and hills surrounding the catchement at itsrnnorthern and eastern, part with flat land areas in central, western and southern part withrnhumid climatic conditions and rivers that flow towards south.rnThe basaltic lava flows (Alaji and Tarmaber Megeze formation); Trachyitic and Rhyoliticrnvolcanic rocks, phyroclastic deposits and Quaternary Alluvial sediments are majorrngeologic units in the area.rnOn annual basis, the area has 1253.3mm; 748.2 mm, and 310.6 mm of mean total rainfall,rnActual Evopotranspiration (AET), and groundwater recharge respectively, and is foundrnunder moisture surplus where by, precipitation satisfy soil moisture demand.rnThe groundwater recharge from the annual precipitation in the area is very high. ThernHoleta River catchement is wide and very long. The land slope with in the catchement isrnvery gentle. The outcrops in the area are highly fractured and jointed. Local minor faultsrnand regional fractures are densely distributed in the area. There fore, recharge to therngroundwater from the local precipitation with in the catchement is found to be high, sornthat groundwater storage of the area having alluvial sediments, weathered and fracturedrnbasaltic rocks and scoracious basalts as main aquifer and highly weathered basaltrn(paleosoil) layer as confining (barrier) is very high. The main recharge area of the study catchement are Foâ€™ata mountain range, Foâ€™atarnmintile area Simbirtu kotu area, in the northern part, and Wechecha Menagesha mountainrnchain in the eastern part of the catchement, which are also located at higher elevation.rnThese high lying areas get high rain fall compared to its surrounding low-lying area.rnMoreover, the groundwater movement in most places sub- parallel to the surface waterrnflow and more or less controlled by the topography of the area.rnAccording to the hydro geological investigation under taken with in the catchement andrnas it has been revealed also from the yield of wells, the catchement is categorized in tornfour permeability and productivity zones. The high permeability and productivity areasrn(yield â‰¥ 10 l/s), moderate permeability and productivity (yield 5-10 l/s) low permeabilityrnand productivity (yield 2-5 l/s), and poor permeability and productivity (yield < 2l/sec).rnThe water samples analyzed in the area have 15.5 oc to 24.7 oc and less than 1000 mg/l ofrntemperature and TDS respectively, eventhough they show progressive increase along thernflow path. In all analyzed samples calcium is the dominant cation and bicarbonate is therndominant anion. The water in the catchement is mainly of Ca-Mg-HCO3, Ca-Na-HCO3rnand Ca.HCO3. Almost all the analyzed water samples are with in the limit of acceptablernvalue of WHO (World Health organization) water quality standards for water supply andrnirrigation.rnIn general the current water resource potential (quantity and quality) of the catchementrnfor domestic, agricultural, and industrial is evidently enormous. How ever the long termrnsustainable use of this resource requires an integrated effort of all concernedrnprofessionals and departments and the inhabitants of the whole population of therncatchement and its surroundings as to how to use and protect the soil- water- forestrnsystem in the catchement as it is very decisive in the fate of the future generation.