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Demand for water supply infrastructure is much greater than its supply due to rapid population growth in Gimbi town .Objective of this study is to assess the overall conditions of water supply infrastructure and service delivery in the town. Descriptive type of study was conducted and both primary and secondary were collected. Study confirmed that town is facing severe water supply service problem. Survey result shows that water produced only covers 30.39 percent of the demand and existing situations decreased the daily average consumption of pipe water to 6.08 liters/person/day. Study identified population growth, inadequate water supply source, frequent interruption, unaccounted for water, insufficient funding and capacity, and limited stakeholders participation as factors for inadequate water supply infrastructure and service delivery. Paper recommends exploring additional source, redesigning the water distribution system, encouraging capacity building for staffs, carrying outappropriate operation and maintenance, introducing water harvesting program, launching water infrastructural assets management and promoting stakeholders participation for the improvement.