The agriculture sector in Ethiopia in mainly rain dependency and challenged by climate change induced water shortage that is among the main reasons for persistent poverty. Therefore, this study focused on examining community perception and adoption of RWHT and its impact on household welfare: the case of Mida woremo woreda, north Shewa zone of Amhara region, Ethiopia. The research employed mixed-method approach whereby both qualitative and quantitative methods of data collection and analysis were made. Moreover, the study employed both primary and secondary sources of data and the data acquired through focus group discussion; key informant interview and personal observations were also thematically and systematically organized, discussed through triangulation with the findings of household survey. A representative sample size of 304 was statistically determined and the population was stratified as adopter (155 households) and non-adopters (149 households) of RWHT. The results obtained through household survey were empirically quantified and presented using SPSS version 26 and STATA version 14 by employing simple descriptive and inferential statistics, binary logit regression and ordinary least square (OLS) model. For this study adoption of RWHT and non-adoption of RWHT used as dependent variable in the logit model while annual income size used as outcome variable in OLS. The result of the econometric model indicates marital status of the household head has positively related to RWHT adoption decision; Irrigation access of the household has positively related to RWHT adoption decision; agricultural extension access of the household has positively related to RWHT adoption decision, credit access of the household has negatively related to RWHT adoption decision; total arable land size of the household has positively related to RWHT adoption decision. However, there is no significant difference in the likelihood of earn more income between a household who are adopt RWHT and household who are not decide to adopt RWHT. This study recommends a carefully review on the reforms to be taken in relation to rural households livelihood situation in general region.