ABSTRACT This study analyzed the determinant of household willingness to pay for clean drinking water in Berehet woreda, Amhara Region, Ethiopia. In the study area, inappropriate water tariff contributes for low coverage of clean drinking water and poor s ervice of the existing water source. This study also examines household willingness to pay for improved water supply: and the determinant factors for their decision in the case of Berehet Woreda. Simple random sampling technique was used to select one rural kebele and the total sample household of 384 from the two kebeles one from rural and one from urban. To analyze the data collected both descriptive and econometric model such as Bivariate probit and double bound dich otomous model were used. From the descriptive analysis, the major problem of the existing water services in the two kebele is inadequate quantity, bad quality, and unreliability of the sources. The other problem of the water source is the total time taken to fetch the water, on average the household take 80 minutes to fetch water, the distance from home to public tap 34 minute and waiting to the public tap 46 minute. 64.5% of the household did not satisfy with the existing services. The survey result shows the average family size in the study area is 3.88 per household. The daily water consumption of the household is also 5.2 jerican per household and the mean income of the household is 41,376 Birr. The result from Bivariate probit model indicates that the f actor that determine the willingness of the household for clean drinking water in the study area is respondent’s age, level of education; such as primary, secondary and tertiary level; household daily water consumption; total household yearly income, household family size, total time taken to fetch water from the source in minute; the household level of satisfaction on existing water supply; the reliability of existing water source; perception of the respondent about the quali ty of the existing water supply; employment status of the respondent and initial bid offered for the respondent are significantly affect ing the WTP of the respondent for clean drinking water supply in the study area. The variable location or residence is not statistically significant th is implies that there is no significant difference in willingness to pay for clean drinking water in the study area between rural and urban. The other finding from the survey, the maximum willingness of the household is 0.60 Birr per jerican, this price can cover the cost but it might not be affordable for some low-income household in the study area. Therefore, it needs a serious consideration when the lower tariff is set and the tariff for public tap user should not be the same for both rural and urban. The additional public tap should be constructed and it also needs to consider distanthousehold from the public tap to reduce the time they take on the road and waiting time at public tap