Abstract Groundwater is the most important natural resource, and many people throughout the world rely on it for drinking, particularly in rural areas. The present study was carried out to assess the status of groundwater quality and to check its suitability for domestic purposes in urban centres of Bahir Dar City, Ethiopia. Twelve shallow wells were selected for sampling. The sampled water was taken during the dry and summer seasons of the year 2019/2020. pH, turbidity, EC, TDS, chloride (Cl−), nitrate (NO3−), phosphate (PO4−3), total hardness, and Escherichia coli were measured for the suitability analysis. Comparison of measured results with those of WHO and Ethiopian drinking water quality standards was done. Moreover, Geographic Information System (GIS) and Water Quality Index (WQI) data analysis techniques were applied in order to investigate the groundwater quality. The spatial distribution map showed that the city's core area had the poorest groundwater quality status. The WQI result obtained from the analysis showed that 41.67, 33.33, and 25% of the sampled groundwater has low, extremely poor, and unsafe quality for drinking purposes, respectively. The present study revealed that anthropogenic activities have a great impact on the quality of groundwater in the area, necessitating immediate mitigating actions.