In Ethiopia water pumping system is given less concern regarding to energy saving and in groundwaterrnmanagement. The amount of groundwater recharging is affected by many factors like seasonal rainrnvariation, global warming, drought and also groundwater withdrawal. This changes significantly showrnin a water pumping system hydrodynamic head and flowrate changes. Since, the draw down in thernsystem increases because of the ground water recharging is less in the system, the amount of waterrndischarge decreases.rnWhen the amount of the water availability in the ground decrease we need such control mechanismsrnto run the pumping system. The most commonly used controlling system in the country for waterrnpumps are throttling.rnThis thesis is focused on ten deep-well pumps at Akaki well-field Phase-3A ground water pumpingrnsystem. Studying and evaluate the efficiency the actual groundwater pumping system, make energyrnefficiency/saving analysis and economic analysis for the improved system.rnThe actual water pumps used to withdraw water from ground at this sites are fixes speed centrifugalrnsubmersible pumps, and throttled to the amount of water availability. This types of control techniquesrnare characterized by low efficiency and high energy consumption. Therefore, this pumps draw nearlyrnfull horsepower and consume maximum energy full time regardless of water availability in the ground.rnThis research carried out the simulation and performance analysis of such pump motors byrnimplementing a variable frequency drive control between the power supply and motor, usingrnMATLAB/SIMULINK model and shows the motor perform in its maximum efficiency. Successfullyrnachieved the control of the speed of the induction motor by varying the frequency of the appliedrnvoltage using pulse width modulation method. Affinity laws also used to predict the pumprnperformance change to re-design the system in variable speed pump analysis. The economic analysisrnis shown through comparison between the pumps operating energy consumption cost and investmentrncost to implement the VFD control system.rnThe results of this thesis provides a potential energy efficiency/ saving for using VFD in Akaki wellfieldrnsubmersible pumps. The redesigned VSD control system provides low energy consumption inrnKWh, depends on the actual groundwater discharge capacity and economically viable to implementrnthe variable speed drive control system to the existing pumps.