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The traditional approach to make avail water for consumption purpose alone has become an obsolete plan. As a result, the role of water for multi-purpose in rural areas has got great momentum in developing countries. Water these days becomes highly essential ingredient for the rural household's home based productive use of water beyond the usual basic needs consumption. In recognition to this, this book aimed at three main objectives; assessment of the home based productive use of water, the factors that affect the productive use of water and examining the major challenges of rural water supply in the study area. Since the book has employed both quantitative and qualitative research methods; it has great relevance in the contemporary development of research methodology in social science. Specifically, the study articulated the result of the study employing both descriptive and econometrics model. Due to this fact, the book will be an important guide for studies related with econometric specifications and interpretations.