Water resource potential evaluation is carried out on Beressa river catchment which is locatedrnabout 130 km from Addis Ababa on the way to Dessie. The study area covers 336 km2 andrnhaving average elevation ranges from 2100m to 3675 m above mean sea level. The area hasrn13-16 0c average annual temperature, 1120 mm annual rainfall and temperate (weyna daga) torncool (kur) climate. It is located in the Ethiopian highland plateau adjoining the westernrnescarpment of the rift valley and the area is within Jema river basin which is one of the mainrntributaries of Blue Nile River.rnBy analyzing the available meteorological data, open water evaporation and potentialrnevapotranspiration is calculated using penman combined method and the results are 1336mmrnand 1180mm respectively. The actual evapotranspiration of the catchment is calculated usingrnThornthwait and Mather soil water balance model and the annual AET is 731mm. From therncomputed water balance, the amount of water infiltrated to subsurface is 122.46 mm.rnThe local geology of the study area is Tertiary volcanic rocks which are lower basalt, rhyoliticrnignimbrite, upper basalt and residual silty clay soil patches along the river valleys. These rockrnunits are weathered, fractured and jointed.rnBased on groundwater circulation and storage controlling factors of the area that is degree ofrnweathering, fracturing, faulting of the geological formation, topographic nature, recharge andrndischarge condition of the area; the hydrogeological map is produced classifying thearea intorn3 similar hydrostratigraphic units having high, medium and low-very groundwater potentialrnzone. From available pumping test data the high groundwater potential zone has 5-15 l/secrnyield, 10-332 m2/d transmissivity and 0.3-7.8 m/d hydraulic-conductivity and where as thernmedium groundwater potential zone has 1- 4 l/sec yield, 1.5-2..22 m2/d transmissivity andrn0.04-0.045 m/d hydraulic-conductivity.rnPhysical parameters measurements, chemical and bacteriological laboratory analysis of waterrnsamples were conducted to study the water quality and the pollution of water resources of therncatchmrnt. Accordingly, almost all sampled water show fresh water (TDS =55-307 mg/l),rnsoft to moderately hard, CaHCO3 and Ca-Na- HCO3 water types. But two boreholes and onernspring water sampled from water schemes located in the town show hard water and Ca HCO3-Cl, Ca-Na-HCO3-Cl and Caâ€“Cl-HCO3 type water. These three water sources have 46-rn55 mg/l nitrate and 46-63 mg/l chloride ions concentration. The source of these ions in thesernthree water samples might be due to contamination from disposal of the town municipal solidrnand liquid wastes released to open land surface. From 10 water samples microbiological test,rn6 water samples were polluted by coliform bacteria due to waste disposal and poor sanitaryrnprotection.