This study assessed various aspects of the challenges of improved access to water supply and sanitation in the peripheral areas of Addis Ababa particularly in Yeka sub city. As indicated in the analysis part the challenges of improved access to water supply and sanitation among the majority households in the study area could be seen from different perspectives. Institutional problems, poor integration among sectors, lack of public participation, and low level of private sectors involvement are the main reasons for the current challenges of WATSAN in the study area which greatly affects the socio economic as well environmental well being of the society.