Water is perceived as an economic, social, environmental, cultural good or a political tool. Every water crisis is attached with the crises of governance. There are overlapping and competing interests, water insecurities and grabbing. The prioritization of water use rights is unresearched area in Ethiopia. This research is primarily significant to inductively explore and develop potential prioritizing principles. The research is conducted with the general objective of investigating and exploring the governance of water, prioritization of use rights and risks of grabbing on Awash River Basin and ground water governance in Mekoni case studies. Primarily, the first case study is carried out based on the qualitative research approach. The second case study is approached through a mixed research approach by adhering to the QUAL research design. The findings indicate federalism, IRBM, and functional approach to water governance are not mutually communicated, supported, balanced, reconciled and promoted. The structural arrangement is very loose, fragmented, disintegrated. There is not a comprehensive regulatory framework, lack of clarity in the Constitution, policy, subsidiary laws, and lacking an enabling institutional and organizational framework. The prioritization is not implemented based on the deconstruction of the bundled rights and it is not socially equitable, technically efficient, and environmentally sound. This is causing conflicts among different types of water users having varying attributes. The points of controversies include on jurisdiction, mandate of management or administration, questions of constitutionality, access and ownership, volume, mandate on water tariff collection, overlap of mandates etc. There is lack of facility and technology, financial and human resource constraints. There shall be a water reform on the policy, laws, ranking of water use rights, clear and consistent allocation of power and structure, enabling to avoid conflicts and alternative dispute settlement arrangements. It is a must to design sustainable, efficient, equitable and participatory water governance system.