Brand equity is generally accepted as a critical success factor to any industry and service providers fromrnits competitors. It also contributes both theoretically and practically on Customer based brand equityrn(CBBE), measurement and assisting managers in a way that it impacts organizationsâ€™ business preferencernand profitability at high level. However, there was no adequate theoretical and empirical evidence for thernapplication of CBBE in Ethiopian bottled water industry so that the industry has not been clear withrnwhich dimension of the brand equity strongly influences the customers to prefer a brand. Hence, the studyrnwas designed to analyze the determinants of CBBE and how brand equity affects bottled water industry inrnEthiopia. Explanatory and descriptive research design using cross-sectional survey was carried out fromrnNovember, 2016 to May, 2017 at randomly selected mini-markets, super markets, restaurants, hotels andrnoffices. Non-probability sampling techniques were employed to select study area and participants. Arnstructured questionnaire was used to collect the data. The data were analyzed by using StatisticalrnPackage for Social Sciences (SPSS) version 21.0 software. In this study, the response rate was found to bern95.3% (384/403) in the study area. A multiple regression analysis was employed to verify four hypothesesrnof all the determinants: Brand Awareness, brand association, brand perceived quality and brand loyaltyrnhave a positive and significant effect on CBBE of the industry (p