The major purpose of this study was to asses the practice of RWH scheme with particular emphasis on itsrnchallenges, strengths and potentials to enhance food security of peasant households in Kalu Woreda,rnSouth Wello Zone, Amhara Regional State. To materialize this objective, the extent of implementation, thernprocesses, challenges and perceived potentials of the scheme have been examined in four randomlyrnselected sample Kebeles of the study Woreda. The attitude and perception of users and non users towardsrnthe RWH scheme has also been considered.rnData for this study were gathered by means of questionnaires, interviews, FGDs and document analysis.rnBesides, observation to RWH structures was made. A total of 80 HHs and 20 DAs and concerned districtrnofficials were included in this study. Sample HHs were then chosen using stratified random samplingrntechnique. Descriptive statistics had been employed to analyze the data.rnThe study found out that in 2004105, about 80 percent of the plan has been accomplished. However,rnthe distribution of constructed RWH structures indicated that about 70 percent of the structures in thernstudy Warda were found in four sample Kebeles while the remaining 30 percent were sparselyrndistributed in 31 Peasant Associations. Poor quality materials used in the construction of RWH havernled to the prevalence of cracks on the structures. Coupled with this is the problem of safety, whichrncaused serious threat to children and animals. These weaknesses were identified as the majorrnchallenges that strictly hinder the potential usefulness of the program. Besides, continuous pressurernfrom the Regional Government upon the Woreda Administration to implement its quota has led torncoerce the community to involve in the RWH program at the initial phase. As such, in the survey, 58rnpercent of the non-beneficiaries replied as they did not lost any better agricultural opportunities beingrnout of the RWH program and most respondents didn't also have any interest to participate in RWHrnscheme in the future.rnBased on the above major findings, the study recommended, among other things, that a thorough analysisrnand selection should be made to adapt the most appropriate RWH structure to specific contexts. Inrnaddition, it is important to design an appropriate RWH plan that coincides with the implementation capacityrnof the Woreda Government and the Kebele Administrations instead of quota system. Before extending thernRWH technology to many areas of the locality, It is also advisable to begin with a pilot project to raise thernawareness level of the community and enhance the potentials of RWH program for improved food security.rnThis is important to learn lessons from the shortcomings of the previous program.rnKey words: rainwater harvesting, rainwater harvesting structure, Kalu Woreda.