In areas where the supply of grid power is very difficult, utilisation of Micro hydro-power asrnrenewable energy source is of great concern now a-days to eliminat extreme poverty around thernworld. These schemes can provide environmentally sustainable electricity and mechanical power tornrural communities. For this purpose, selected types of micro hydro turbines need to be designed andrndeveloped depending up on the site locations. rn Thus, considering the potential of hydropower generation in Ethiopia, this research addresses therndesign, optimization, local manufacturing, and experimental test of a model of micro hydro Peltonrnturbine for one of the selected potential site (Indris River) in South West Shewa of Ethiopia to meetrnthe requirements of the energy demands of the nearby village as a case study. rn Initially, the geometries to be compared (baseline design of the turbine) were done with the designrnguide lines and tested by developing numerical model using commercial CFD. Considerations arerntaken in designing the turbine with an effective post life recycling scheme in mind so that there willrnbe minimum wastage of resources once the turbine is made redundant. rn CFD simulations using ANSYS-CFX were conducted, to optimize further the bucket shape inrnorder to get a cost effective runner design. Additionally, consequences of variation in each designrnparameter were evaluated from the baseline design. The result of the study proposes somernmodifications in the baseline design. Through the analysis, a weight reduction of around 7.6% isrnachieved due to the modified runner design. Moreover, CFD was predicting a 3.9 % improvement ofrnhydraulic efficiency. The optimization of number of buckets, length, depth and shape of the lip curvernare the main design parameters for the achieved improvement in efficiency. It is then checked forrnstructural safety with a more accurate method using ANSYS. At a later stage, the model wasrnexperimentally tested at the AAIT Lab to have a tangible confirmation of efficiency at variablernoperational conditions. The experimental results confirmed a 2.8% improvement in efficiency. Thisrnprediction was validated for the modified runner design used in the simulation using the same headrnand flow rate conditions as for the baseline design. rn Overall, the comparative results with CFD were satisfactory and in line with the theory, andrnverifying the turbine model design effectiveness which will be useful for implementation of ruralrnelectrification projects.