This research work describes the performance evaluation and design of solar pv water pumping system by taking a case study at kolella kebele having 0.9 kW motor with 1000W (4 panels of each 250W) have been used for discharge up to 59 m water head. The system efficiency is evaluated by measuring and calculating different factors of solar pump performance and comparing the result with the designed capacity of the solar pumping system. The efficiency of the solar panel due to the variation of irradiation is reduced by 2.035% from the designed working capacity at 1000 W/m2 radiation level. The efficiency of the solar panel due to the generated panel temperature is reduced by 0.755% at 1000 W/m2and 60 0c from the recommended design temperature of 25 0c. The fill factor value was calculated to be 0.7906, 0.7888, 0.784 and 0.7806 at 1000 w/m2, 800 W/m2, 500 W/m2 and 200 W/m2 radiation levels respectively. The submersible pump efficiency is loosed by 3.14 % from its designed capacity, totally the solar water pumping system installed at kolella kebele is reduced its efficiency by 5.96%. The effects of dust also has a great influence on the performance of solar PV water pumping system and by comparing the efficiency of panel at dust were available and after removing dust from panel, the efficiency is reduced by 1.496%. The calculated value of total water demand of the community is 157,200 liter per day, but the measured value that the community still uses from this system is about 16,528 liter/day. The performance of the solar pumping system is good and enough sufficient for the current users of the community but for the whole society of kolella kebele it does not efficient so, due to this reason there were the new design of solar pv water pumping system. The results of the design for the whole community are total hydraulic water requirement is 10,538.8 watt (10.5388 kW), Required electrical energy is 55.8 kwh (11.13 kW), Most much module size to require system is 170 Watt, Number of modules connected in series is 10 modules, Number of modules string in parallel is 8 modules, Total cost of the system is 2,529,950.00 ETB, Cost of pumping by solar pv system is 12.59 ETB/m3, Percent of cost saving compared to diesel pump is 67%. From the result pumping water by using solar PV system is much feasible than the diesel consume pumps.