Safe and adequate drinking water is the most vital human necessities; it is critical for life and economic activities however, Debre Tabor town residents were faced a serious of drinking water shortage because of conservative increasing of water demand due to drastic water losses and the scenario of rapid population growth. The size of the town population was 100992 and one unit percentage error is increased through 33.2% increasing or decreasing of population size. The volume of water loss in the transmission pipelines were covered 33.32% and water loss in the distribution network had 27.96%. The loss of water was directly increased with increasing of water production at the source but it could be reduce through increasing of water at the transfer pumps and at the reservoirs. Through domestic water demand analysis, Debre Tabor town had a house, yard and yard share modes of service connections but the public tap was insignificant. The yard connections were the maximum volume water consumption in the town and the number of connections was closed to the mode of the service population. Out of the total water demand, non-domestic water was covered by 10.41%. The production of water from standard water loss would satisfy for 10hr and 42.3min but it could satisfy only for 5hr and 32min at 61.28% water loss. However, the maximum numbers of households were supplied pipe water once per 15 days and cluster two supplied in 20 days. Besides, in every one unit increasing of piped water supply, one unit water shortage would be decreased at a constant population size. Personal interest, water loss, design limitation, pump problem and national power grid interruption were the cause of drinking water shortage. For one unit increasing of water shortage; the water shortage copying mechanisms would need to increase by 27.9%.