The mass populated area of Semien Shewa zones of the Amhara and Oromia regions that are called as Jemma river basin areas reside with a shortage of electrical energy supply.Besides,the water resource of this basin is not functional. Thus, this study is done for the purpose of extracting the resource appropriately for hydro power generation.This study requires data for simulation of flow rates and terrain characteristic. The data was categorized as spatial thematic map data like Digital elevation model, soil and land use along with the use of discrete data at specific locations, i.e. precipitation, temperature, solar radiation, wind speed, and relative humidity data were all used. The preferred method used for this un gauged remote site study is GIS processing using ArcSWAT and DEM base surface modelling process. Based on available data and calculation method suited on the above,the Jemma river basin has a total area of 15,782 square kilometres of land and it is possible to recognize being of 28 streams and some selected streams embark on 185 possible sites based on 50% dependable discharge that were identified and capable to produce up to 0.980 GW installable hydropower potentials. From the total 185 site, 78 potential sites was generated from five stream order 3 streams and covers a total length of 134.79 kms. it earns installable power output of 0.534 GW and out of the 78 sites,48 sites located in the abave mentioned five stream was obtained adequate long time base 50% dependable discharge amount ranging between 141.8- 66.25 m3/s and also acquire a reasonable head drop ranging between 10- 250 m. Thus, 48 sites are the best promising site based on technical feasibility and less requisite of intial investement cost for the implementation of the new proposed plant. Additionaly it used to provide a best alternative electric power supply package for near by local community through cost-effective manner.also the result of study provide superior tinputs on how the water resource can be functional to small scale hydro power generation development .means, its a way that used to expaned small hydropower plants in the study area scene considering the growing power demand, and availability of unexploited water resources. However, In this paper only theoretical hydro power potential was estimated. The facts about the system component design, technical, economical and water use conflicts in the area are not covered, hence, the study needs to be extended to further work before implementation of the new selected projects.