The development of a balanced plan for water resources utilization requires full knowledge ofrnquantity, quality and distribution of water resources and also the changing pattern of land use inrnthe entire water shade of and its influence on the river flows in the study area (Guma SubrnCatchment) which is located and is bounded within7010' N- 70 25' N latitude and 360 05’ E - 360rn30' E longitude.rnThe total aerial coverage of the study area is about 876 km2study area. Prior to this research work,rnthe contribution of information about the water resources and water budget components were notrnknown.The combined effects of climate and geology on the catchment topography yield anrnerosion pattern which is characterized by a net work of channels or streams. Topography of thernarea ranges from flat to mountains and gorges. The average monthly rainfall ranges from aboutrn253.51 mm in the highlands in the northeastern part of the study area and 48.86 mm in thernnorthwestern part of the area.rnHydrologic and hydrogeologic investigation and water balance calculation were used to studyrnthe surface-ground water interaction in Upper Guma Sub-Catchment with emphasis given tornhydrochemistry.Classification of water types in the area according to the tri-linear piper diagramrnplots show that, most of the hand dug wells are Ca-Na-HCO3 and Ca-Mg-Cl water type wherernas springs show, Ca-Na-HCO3 and Ca-Mg-HCO3 water type. The borehole result has a waterrntype of Ca-Mg-HCO3 and Na-Ca-HCO3 which signifies the dominancy of volcanic terrain.rnBased on major cations and anions, the general water quality for public supplies, irrigation andrnindustry are identfied in the study area.rnValues of net groundwater recharge estimate is determined from water balance calculation andrnfound to be 110.7 MCM annually accounting not greater than ten percent of the annualrnprecipitation indicating that groundwater resources should be wisely exploited giving duernattention to the integration of the surface water resources of the area. The result of this study canrnbe used as data source for future sustainable development and management the catchment area.