Международный журнал экономики и менеджмента

This research describes the findings of efficient utilization of river water; constraints and effects; case of Alewuha sub-basin in Raya-kobo-woreda. With simple random particularly lottery method, 50 samples drawn out of 3500 in proportionate representatives. Based on this, the collected data through structured interview questionnaire was analyzed with descriptive statistics analysis. It describes; land fragmentation, lack of technology, management problem, nature of channel constructed, disease and lack of skilled man power, lack of budget to maintain the channel system and repair the damaged channel, lack of interaction among the farmers, bad seed bed preparation and types of irrigation they use as a major constraints and their effects on yield reduction (-) and households emigration (+). Farmers in that river basin should convert rain fed land in to irrigable land by making a channel and they should utilize the river wisely.