Groundwater is the most valuable natural resource in the world and it is the fundamental source fresh water, for growth and development of one country. However identifying the groundwater potential zone is still complex due to the nature of groundwater and their quality also vary due to spatial variation. Therefore, this study aims to use the timely and cost effective geographical information system (GIS) and Remote Sensing methods for identifying groundwater potential zone, assessing the its quality for drinking purpose and examining the connection between them in Chagni and the surrounding area. For groundwater potential zonation nine thematic layers derived from Digital Elevation Model (DEM) with 12.5m spatial resolution, sentinel 2A Satellite image of the year 2021, and other secondary sources were utilized in this research. Using MCDA of AHP method all of the thematic layers (slope, rainfall, drainage density, lineament density, geomorphology, lithology, soil, land-use/land-cover and groundwater depth) were reclassified and weight for each factor was assigned based on their relative contribution to groundwater by the help of experts’ knowledge. The resulting map of groundwater potential zone were identified by using weighted linear combination (WLC) in ArcGIS and shows 15.1% and 48% of the area has very high and high potential respectively, while 2.6 % of the area has very low potential. For groundwater quality assessment collected water samples from 11 wells were tested in the laboratory. About 12 water quality parameters (pH, EC, Turbidity, TDS, NO3-N, Nitrate, Total hardness, potassium, Iron, Fluoride, chloride and Sodium-Chloride) were analyzed using Water Quality Index (WQI) method. The spatial distribution map of all the water quality parameters and overall WQI map were prepared with IDW interpolation method. The WQI result shows that well 1, 4 and 8 are poor (WQI > 100), well 2, 5, 9 and 11 are good (WQI is 50-100) and well 3, 6, 7 and 10 are excellent (WQI below 50) for drinking purpose. Based on the result around 21.1% and 73% of the study area has excellent and good water quality respectively and only 5.9% of the area was poor quality. Based on the connection between GWP and GWQ in the study area, around 20% km2 area of excellent water and 68.6km2 area of good water found in high potential zone. And only 3.69km2 area of excellent water found in low potential zone of the study area. In general, the assessment of groundwater potential and quality requires further geotechnical and hydrological analyses to ensure the suitability with required standards for design and implementation. Key Words: groundwater potential, groundwater quality, GIS, AHP, WQ