The shortage of drinking water is one of the critical social issues concerning thernMekele town. Groundwater is the only source to fulfil the need so far. However,rnthere is no sufficient water supply for the town. Therefore a detailedrnhydrogeological investigations of the well field supplying the Mekele Town and itsrnreserve assessment with respect to the increasing demand is very important.rnIn light of this and based on the available data of well logs, pumping tests,rnmeteorological data and field observations an attempt has been made to map thernarea and characterize the aquifer parameters. The study area constituternlimestone, shale & marl, and dolerite as main units with variable hydrogeologicalrnimportance. Limestone is the main aquifer unit with hydraulic conductivity valuesrnranging from 29-74 m/day while the dolerite is the second important aquifer withrnhydraulic conductivity values 0.02-1 m/day . The role of the shale and marl isrnconfined to that part of the recharge and transition zone.rnPrecipitation is the most important source of recharge. Nine percent (57 mm) ofrnthe total rainfall is detained by the soil and ultimately joins the groundwater.rnChannel loss manifested by the disappearance and reappearance of thernAynalem river the second important component of groundwater recharge. Thernpresence of ponds in the recharge area and their construction on fault zones andrncavernous limestones also contribute significant amount of water.rnTwo main fault systems affect the area. The role of these structures is not onlyrnconfined in controlling drainage patterns but also serve as groundwater conduitsrninto and out of the catchment. The presence of cavernous features play anrnimportant role in the groundwater movement. Bedding planes and joints are alsornimportant vertical and horizontal pathways.rnWater quality assessment on a number of samples revealed that the well filed isrnentirely free from antropogenic pollution. They are basically within the acceptablernlimits for the use as drinking water and for irrigation. The water type varies formrncalcium carbonate to calcium sulfate as one goes form east to west indicatingrngroundwater evolution.rnThe results of water balance calculations and rough groundwater reservernestimation were compared with the population growth rate of Mekele and therncorresponding estimated water demand. The outcome of this analysis can bernstated as that the groundwater recharge by far overweighs the need