Hydro power is extracted from the natural potential of usable water resources, and about 20% of the world¿s power requirement is at present derived in this way. The latest technological advancements in hydroelectric power generation permit the selection of proper designs incorporating environmental and social requirements. Land use is one example of environmental considerations in hydro power development. Ethiopia has a vast hydropower potential, which is estimated to be about 15, 000 - 30, 000MW. So far very little percentage (less than 2%) of the vast potential has been hitched. In order to develop this vast potential of power several project have been initiated to generate more and more hydroelectric power.