Surface water quality is a matter of critical concern in developing countries because of ever increasing population and their demand. Shine River is one of the perennial rivers in Tana sub basin that gives multiple purposes for the community living around the river banks of Addis Zemen Town. However, due to very poor liquid and solid waste management practices of the community river water highly vulnerable to pollutions. The objective of this study was to assess the physicochemical and micro biological water quality of Shine River. For the study, five sampling sites of the river reach were selected systematically and samples collected from sampling site both during wet (August and September 2011) and dry (December and February 2012) season using composite sampling techniques. A total of 15 water quality parameters were tested; five parameters tested on situ using multi probe and remain 10 parameters were tested in laboratory. Based on the WHO water quality test procedure, samples transported to laboratory. From the study, TDS, EC, Ammonia, Nitrite, Nitrate, Phosphate, Temperature, pH, Ca2+, K+, Na+ and mg2+ mean values were almost found within the permissible limits of EPA and WHO in all sampling points during dry and wet seasons. Whereas the mean value of turbidity, BOD5, DO (SP4 and SP5), fecal and total coliform were above the permissible limit of WHO at all sampling points on both during dry and wet seasons. Irrigation water quality parameters like salinity, SAR, SSP and MAR values below the permissible limits of the FAO guidelines. But MAR at sampling point four was above FAO guidelines in the study area. The water pollution levels in dry and wet season were poor water quality (slightly polluted) and unsuitable (heavily polluted) respectively. From statistically analysis result, water quality parameters (BOD, DO, Po4, No2, NH3) were spatially not significant variation (p > 0.05) and other parameters (Temperature, pH, turbidity, TDS,EC, Ca, mg and No3) were statistically significant and except (Ammonia, Nitrite), all other parameters temporally significant variation (p < 0.05). Finally, close monitoring of the river water and develop river water quality management is very important for shine river to sustain development program in the watershed.