The study area, Metehara to Nura era, covers a total area of 777 km2 In this area,rnmechanized farms of sugar cane and citrus fruits are found and more than 12,000rnworkers .depend their lives on the plantations. Though the main source of water forrndomestic purposes is Awash River, there are some boreholes which serve to fulfill thernneeds of the society. One purpose of this work is to determine the groundwater potentialrnfor the area. Accordingly, water balance calculation for the area was carried out andrngroundwater recharge of the area was calculated to be 2 Mm3 of water annually, Thernactual evapotranspiration estimation gave a value of 522 mm while the mean annualrnrainfall' of the area is 593 mm. The runoff over the study area was determined andrnresulted value of 52 Million cubic meter of water was obtained.rnTotal dissolved solids (TD8) value shows an increasing trend in groundwaters towardsrnthe lake. Beseka Lake has the highest concentration of TD8 showing that it is highlyrnmineralized. Fluoride concentration in groundwaters shows variation where the highestrnvalues were observed on boreholes close to Fentale Mountain. The fluoridernconcentration of Beseka Lake also has high (as high as 32.7 mg/l). High nitraternconcentrations (as high as 96.8 mg/l) were observed on boreholes located inside thernfarms (most probably due to the application of fertilizers) and also in places where therernis an increased number of population and this increase in nitrate concentration inrndensely populated areas is probably the effect of septic tanks