The study area is found in the southern part of thernnorthern sector of the Main Ethiopian Rift some 97 km southeastrnof the capital. It covers a surface area of about 370 sq.km.rnElevation varies from below 1600 m.a.s.l. to more thanrn1970 m.a.s.l .. More than 70% of the area represents low lyingrnflat land with slop~ of.1 to 10%.rnThe area is covered by various igneous rocks which arernproducts of volcanism_that spanned from Pliocene to Recent, andrnalso by Quaternary sediments. The volcanics include;rnignimbrites, basaltic flows, rhyolitic flows and domes,rnunwelded tuffs, pumice and ash deposits. Lacustrine sediments,rnalluvium and colluvium represent the non-volcanic deposits inrnthe area.rnMean annual rainfall of 822.53 mm and mean annualrntemperature of 21'C characterize the study area. According tornwater balance study over the small sub-catchment at the centrernof the area, generally about 49% of the mean annual rainfall isrnlost through evapotranspiration. While about 20% is availablernfor runoff and the remaining about 30% is accounted forrninfiltration to the ground.rnThe main aquifers in the area are coarse grainedrnlacustrine and alluvial sediments, pyroclastic rocks (cinders,rnvolcanic sand and pumice), and weathered or fractured volcanicrnrocks mainly basalts and also somtimes ignimbiitesrnFrom the pumping test data, 'analyes permeabities andrntransmissivities of rocks have been foundto vary: from O. 50 torn78.50 mid and 14.73 to 1355.20 m2/d respectively specific capacity also ranges from 0.26 to 9.13 mJ/hr/m. Highrnpermeability values are observed for the aquifers in thernsouthern part of the area. The pumping test analyses alsornshol1ed that there is a recharge from AI1ash river to thernaquifers at Melka Hida well field.rnDepth to groundwater level ranges from fel" meters in thernsouthern part of the area to more than 170 meter in itsrnnorthern part. From the groundwater contour, it can be observedrnthat the general groundwater flow is to the south in the deeperrnaquifers. In the shallow aquifer zone (that is , southern partrnof the study area) groundwater flows towards Awash river inrnlocally different directions from both sides of the river.rnThe chemical analyses result showed that the ~Taters of thernarea are mainly bicarbonate type varying from sodiumbicarbonaternto calcium-bicarbonate ones. The analyses alsornshowed that there is high fluoride concentration above thernacceptable limit for drinking in the groundwaters.rnPotential places for groundwater in the area arernrestr icted to its southern part. The remaining part is ofrnlimi ted potential not only due to 1011 permeabili ties ofrnaquifers but also due to large depth to groundwater level.rnFinally, it seems that conjunctive use of groundwater andrnsurface water from Awash river is the only solution to meetrnfuture water demand of the town and of its surrounding.