The present study area is located in Rift Valley drainage basin, in the central part of the country.rnMeki and Kater drainage Sub-basins of Lake Zeway have been identified for the present study.rnThe main objective of the present study was to identify potential Small Hydropower sites inrnthe study area and to carry out ground verification with engineering geological appraisal, atrnpre-feasibility level, for selected sites.rnIn total 49 potential SHP sites has been identified during the present study. Out of these, 19rnsites fall within Meki sub-basin and 30 in Kater sub-basin. Most of these identified sites arernconcentrated along the margin of the sub-basins. For the potential sites the 10 daily observedrndischarge data has been projected from adjacent gauged stations by percent area ratio methodrnfor those which demonstrate similar catchment characteristic, based on statistical regressionrnanalysis. Initial estimation of the power potential of 49 SHP sites has been computed for 75%rndependable discharge and taking turbine efficiency to be 90% and efficiency of the generatorrnas 95%. The head losses caused by the frictions and bends in the penstock have been takenrnequal to 10% of the gross hydraulic head. Thus, the total power potential, as estimated for 49rnidentified sites for which discharge data was available, comes out to be around 17 MW. Thus,rnthese 49 potential SHP sites can be ground verified and be taken up for detailed EngineeringrnGeological Appraisal. However, for the present study, with the limitation of resources, timernand financial constraints it was not possible to undertake ground verification and detailedrnengineering geological appraisal of all 49 SHP sites. Therefore, a sincere effort has been madernto select 3 potential SHP site namely; Rufael, Weldia and Lebu to undertake ground verificationrnand engineering geological appraisal, at prefeasibility level. These sites were ground verifiedrnfor the availability of the head, discharge, the possible layout and turbine selection. Further,rnengineering geological appraisal of these sites has also been carried out at prefeasibility level.rnFinally based on the results and finding of the present study, certain recommendations has beenrnmade.rnKey words: Small Hydropower (SHP), Site Identification, Power potential EngineeringrnGeological Appraisal