Livestock interact with the environment directly or indirectly in thernprocess of their production. The interaction with the water resources isrnalso direct or indirect and can be positive or negative depending on thernsystem of production. In the study area of this work, the mixed croplivestockrnproduction is the main type of livestock production byrnsmallhoder subsistence farmers where cattle are reared for dairying.rnThe study was done as a case study of two selected PA’s of thernwereda. One part of this research was to describe the dairy cattlernwater interaction. The study has showed that water required for thernproduction of cattle feed was reduced by 2.6*105 m3 per annumrnbecause of crop residual feeds. This implies a good water-dairy cattlerninteraction in the study PA’s of Wuchale wereda. Field measurements,rnquestionnaire surveying and sample water laboratory tests withrnappropriate statistical analysis were done to complete the descriptionrnof dairy cattle water interaction. The dairy cattle water productivityrnevaluation of the two selected PA’s of study area was the second partrnof this study. The productivity of the two PA’s was 0.41 USD/m3 andrn0.14 USD/m3 for the peri urban and rural sample locationsrnrespectively. Future improvement aspects of the dairy cattle waterrnproductivity were suggested by this work, which all ends up in thernsustainable management of the dairy cattle- water interaction in thernarea.rnKey words: dairy cattle, cattle-water interaction, voluntary waterrnintake, water productivity and water use efficiency