This research evaluates the groundwater potential, both quantitatively and qualitatively, in Ataye-Senbete river catchment (344 km North Shewa Zone and Oromia Special Zone. 2 ), which is located in Amhara National Regional State, Geologically the catchment is covered by volcanic rocks and alluvial sediment.Fractures that have orientations NW-SE and NE-SW are the major geological structures found in the study area. Geology, Rainfall, Slope, Lineament Density, Land use Land cover, Drainage Density and Soil were selected to delineate the groundwater potential zones of the study area. The groundwater potential zone map in the study area is categorized into five different zones. The annual rainfalls of the study area is analyzed by using Isohyetal method from existing meteorological point data and the value is 1294 mm. The Penman formula (1271mm), and Turc (967mm) and soil water balance method (916mm) were used for determination of the potential evapotranspiration and actual evapotranspiration respectively.. For runoff estimation, the method employed was runoff coefficient, and the runoff value is 65.4 mm. The methods used for recharge estimation are soil water balance (SWB) and chloride mass balance (CMB).Recharge rates of 312.8 and 277.8 mm/year have been estimated based on analysis of soil water balance (SWB) and chloride mass balance (CMB) methods, respectively. The dominant Water type in the study area is Ca-HCO 3 , Ca-Mg-HCO 3 , Ca-Na-HCO 3, Na-CaHCO 3 and Na-HCO 3 -SO 4 .The water sources from boreholes and springs in the study area are free from any pollution and hence fit for drinking purpose, In addition the water sources of the catchment have appropriate water quality for irrigation use.