The issue of unsustainable groundwater utilization is becoming increasingly an evident problem and the key concern for many developing countries. One of the problems is the absence of updated spatial information on the quantity and distribution of groundwater resource. Like the other developing countries, groundwater evaluation in Ethiopia has been usually conducted using field survey which is not feasible in terms of time and resource. This study was conducted in Northern Ethiopia, Wollo Zone, in Gerardo River Catchment district to spatially delineate the groundwater potential areas using geospatial and MCDA tools. To do so, eight major biophysical and environmental factors like geomorphology, lithology, slope, rainfall, land use land cover (LULC), soil, lineament density and drainage density were considered. The sources of these data were satellite image, digital elevation model (DEM), existing thematic maps and metrological station data. Landsat image was used in ERDAS Imagine to drive the LULC of the area, while the geomorphology, soil, and lithology of the area were identified and classified through field survey and digitized from existing maps using the ArcGIS software. The slope, lineament and drainage density of the area were derived from DEM using spatial analysis tools. The rainfall surface map was generated using the thissen polygon interpolation. Finally, after all these thematic maps were organized, weighted value determination for each factor and its field value was computed using IDRSI software. At last, all the factors were integrated together and computed the model using the weighted overlay so that potential groundwater areas were mapped. The findings depicted that the most potential groundwater areas are found in the central and eastern parts of the study area, while the northern and western parts of the Gerado River Catchment have poor potential of groundwater availability. This is mainly due to the cumulative effect of steep topographic and high drainage density. At last, once the potential groundwater areas were identified, cross validation of the resultant model was carefully carried out using existing data of dung wells and bore holes. The point data of dung wells and bore holes were overlaid on groundwater potential suitability map and coincide with the expected values. Generally, from this study, it can be concluded that RS and GIS with the help of MCDA are important tools in monitoring and evaluation of groundwater resource potential areas.