The renewable energy is very important segment of human life in modern world. In Ethiopia most of the people live in rural areas where modern energy access was almost negligible. Hydropower is a clean, renewable and reliable energy source that serves environmental and energy policy objectives. The objective of this study was to identify suitable potential sites for Run of river hydropower in of Fetam river watershed which is a tributary of Abay River located in the Amhara region. Different constraints of spatial data layers have been used. GIS based parametric flow duration curve method and Multi Criteria Decision Analysis was carried out in hydropower potential locations for small scale hydropower in Fetam watershed, the input data was compiled and analyzed using GIS data layers, including topographic characteristics, discharge and precipitation data. Check measured head using differential leveling where three sample sites are data collected. The ranking of suitability of potential sites based on: mean monthly stream discharge, net head available, Road access and distance of small town from sites. From all suitable 15 potential sites were site-12 most suitable sites and site- 8 least suitable site have maximum (17.292GWh) and minimum (0.272 GWh) power potential respectively. The total annual energy potential of from selected sites were estimated about 92.082 GWh, 61.171 GWh and 12.808 GWh for 30%, 50% and 90% flow exceedance respectively. From selected fifteen potential sites in the study area, seven sites are mini and eight sites are small scales hydropower. The study concluded that the assessed or identified run of river hydropower potential sites seem to be perennial as observed from the discharge map and from the hydropower suitability map. Therefore, responsible institution should install gauge station to measure stream flow which is pertinent information’s for hydropower study. Key Words: Energy, Fetam watershed, GIS, Hydropower, MCDA, Run of river, Suitability,