The water policy that has been issued by the government of Ethiopia in 1999 is bothrncomprehensive and sound. Following the water policy, the water sector strategy has beenrndeveloped and issued in 2001 to put the water policy into action. Based on water strategy, thernwater sector development program has been drawn up for a period of 2002-2016. It is knowrnabout eleven years since the water policy has been issued. The extent of its impact on waterrnresources development and management has not been clear so far due to absence of policyrnimplementation plans with appropriate monitoring system and feedback mechanisms. There isrnno means assessing the merits and drawbacks of the policy. This paper tries to assessrnEthiopian Water Resources Management Policy and its implementation. Data were obtainedrnvia a questioner and interview from 38 participants from Ministry of Water Resource, threernagencies, two public enterprises, four regional bureaus, three water related privaterncompanies and one NGO. An interview was also conducted with six key experts from waterrnsector particularly with policy implementations issues. Both primary and secondary data werernused. The writer uses Questioner and interview to collect the necessary data. The datarngathered has been analyzed using the various statistical methods like tables, graphs,rnpercentages. Based on the data obtained from the respondents the study-identified lack ofrninstitutional arrangement, absence of policy implementation plan, absence of publicrnawareness and community participation are critical for the implementation of the policy.rnTherefore based on the major problems recommendations are suggested