Energy crisis has emerged as a serious issue all over the world in recent years. Ethiopia is facing a similar crisis that has resulted in frequent power failures and load shedding throughout the country for past several years. The utilization of renewable energy resources may help reducing fossil fuel dependency of the country for power generation. There are various renewable energy options for Ethiopia including solar, wind and hydropower. The objective of this study is to assess the run-of-river hydropower potential of GumaraRiver using geospatial data and techniques. Gumara River is a tributary Of Abay River located in the Amhara (South Gonder) province of Ethiopia. Satellite data used in this study include ASTER Digital Elevation Model (DEM). Flow data are acquired from regional hydrologic gauges. Geographical Information Systems tools are used for processing the satellite images, delineation of watershed and stream network, and identification of potential sites for hydropower projects.20 suitable hydropower potential Sites were selected and The total amount of theoretical power for Gumara River Basin was 18217.899 Kw, 7596.841Kw, 3985.037 Kw and 425.544Kw for 30%,40%, 50% and 90% flow exceedance respectively and the total Energy output of 105.89GWh/year was obtained from the selected hydropower potential Sites. From the total order of suitable sites, site-5 and site-8&14 were ranked at the first and last respectively based on their suitability. This study will aid decision-makers in the energy sector to optimize the available resources in selecting the suitable sites for small hydropower plants with high power potential. The proposed approach can further be utilized to assess an overall hydropower potential of the country.