ABSTRACT The Nashe River watershed in Ethiopia is experiencing increased water demand due to the growing socioeconomic activities. As a result, the study aimed to assess the surface water potential and allocate water demands in the Nashe watershed, Ethiopia, by utilizing the water evaluation and planning model. The model was calibrated using observed and simulated streamflow data, resulting in a good performance with a Nash–Sutcliffe efficiency of 0.955, a coefficient of determination (R2) of 0.952, and a percentage of bias of −2.859. In the base year (2019), the annual surface runoff was estimated at 1.197 billion cubic meters (BCM), while the current annual water demand is 328.35 million cubic meters (MCM), indicating no water shortage currently. However, future scenario analysis considering a 3.9% annual irrigation expansion showed an increase in irrigation water demand from 0.30076 MCM in the base year to 0.984 MCM by 2050. Additionally, a scenario analyzing natural climate variation indicated a decrease in available surface water resources, ranging from 1.197 BCM during a normal year to 0.267 BCM during a very dry year. The study revealed that there will be unmet water demand during dry months and excess water demand during wet months.
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