In Ethiopia various techniques were applied to improve on-farm irrigation water management under surface irrigation, especially on furrow irrigation system for last many years, however, it was very difficult to achieve threshold limit of water use efficiency, wisely use of scarce water resources in irrigated field, crop water productivity, precisely controlled application of irrigation water to plant roots, uniform water delivery to all plants, crop yield and its quality, regulate flow, deliver optimum crop water requirement, field water losses, groundwater withdrawal and save labor. It is great practical significance and series of measures using drip irrigation system to solve mentioned problems in irrigated field, because the irrigated agriculture is largest water-consuming sector in this area. This study was aimed to demonstrate drip irrigation technology, prove its economic feasibility and create skills of farmers and extension experts on implementation of the drip system on tomato (Galila 555) and head cabbage (Copen Hagen) productions within groundwater source area on Balo koriso main station in Misrak Silti woreda, Siltie zone, southern Ethiopia. The activity was done for four consecutive years (2019 to 2022 G. C) on fixed plot of 2500 square meter area in collaboration with Agricultural Research Institute and Techno serve project. During demonstration all the costs were considered to economic feasibility including initial investment cost. The study found that the use of drip irrigation saved 3690 m<sup>3</sup>/ha of water compared with use of furrow irrigation. This saved water may irrigate additional 2ha area of land by drip irrigation. This study also revealed that, a net income of 313066.04 ETB/ha in single irrigation season was obtained using modern drip irrigation technology. The farmers and local experts recognized noticeable saving water, fuel cost, irrigating time and labour, good crop performance from demonstrated drip irrigation system and shown interest to use the technology abundantly. Therefore, scaling up locally manageable drip irrigation system around the study area through comprehensive training of farmers and supportive staffs and allowing sufficient local market for drip kits and incentives or loan will be economically feasible and affordable to increase income and saves irrigation water.