Water is one of the most essential of all-natural resources known on the earth. The safety of drinking water is important for health. However, water quality is affected by various contaminants such as physicochemical and bacteriological which cause serious health problems. The spring water in Bure Town is vulnerable to contamination by livestock and other human activities. Thus this study was aimed to determine the bacteriological and physicochemical quality of spring water and investigate the sanitation status of the study site in Bure Town. A cross-sectional prospective study was conducted from November 2019 to April 2020. A total of 60 water samples were collected purposively from the most vulnerable site for pollution spring water, 30 samples from piped and 30 samples from none piped spring. Bacteriological qualities of the springs were determined using an indicator organism with multiple fermentation tube technique. Physicochemical parameters like temperature, electrical conductivity, turbidity and pH were determined on-site. The average value of total and faecal coliform of piped spring 6.67 and 1.2 was CFU per 100 ml and in none piped were 58 and 16.37 CFU per 100ml respectively. The temperature at all sampling points was above the permissible limit of 15°C, while pH and electric conductivity of all sites were obtained within the recommended limit of the World Health Organization (WHO). The turbidity of pipe water was within the recommended limit of WHO which is below 5 NTU but none piped was above the recommended. There was a statistically significant difference between water sources concerning total coliform (TC) and faecal coliform (FC) (p < 0.05) and there was a statistically positive correlation between coliform counts and physicochemical parameters. Defecation and agricultural activity near the spring are the causes of contamination. All water did not meet the acceptable limit of the bacteriological quality of drinking water. Avoiding the disposal of waste near the spring water and fencing the surrounding are important to deliver safe drinking water in the study site.