The application of remote sensing and GIS has found to be a quick and inexpensive technique inrnorder to obtain the desired output efficiently. For the present study an attempt was made to maprndykes, lithology and other thematic maps such as of drainage density, slope, elevation, lineament,rnrainfall, landcover and burrowing of rodents and then to integrate them in a GIS environment tornget information about the occurrence of groundwater and used to select promising areas forrnfurther groundwater exploration.rnThe present study was conducted on southeastern part of Ethiopia plateau, the Bale Mountainsrnand the surrounding areas. Satellite image of Landsat ETM+ of all bands except the thermalrnbands were utilized for lithologic and geologic structures mapping. Topographic map at the scalernof 1:50,000 were used to generate elevation contour at the interval of 20m. Slope map werernderived from TIN (Triangulated Irregular Network), which is derived from elevation contour map.rnSpatial distribution of drainage density was derived by using three softwares AutoCAD maprn2000 engineering software, Arcview3.2 and MapInfo professional 6.0. The burrowing of Rodentsrnwere mapped from field Knowledge and using 742(RGB) that shows areas of rodent burrowingrnactivities. Secondary data of landcover, soil were also utilized. Groundwater potentiality in thernarea has been assessed through the integration of the different thematic layers that contributes forrnthe natural recharging of aquifer. The predicted groundwater potential zones were divided into 5rnclasses from very good up to poor.rnColor composite, ratio and PCA (Principal Component analysis) were made to interpret thernlithology of the area. Due to vegetation cover and similarities of reflectance of different rockrnunits it was difficult to separate them. The field knowledge and some petrographic analysisrnsupport the identification of the lithology.rnKey words: dykes, lithology, groundwater potential zone prediction, Remote Sensing and GIS