Irrigation development has been identified as one of the priority investment sectors in Ethiopia and the government has been implementing a number of efforts that enhance the planning and implementation of small-scale irrigation projects in the country. The aim was to identify the potential, feasibility and profitability of irrigation development for spices production mainly pepper in Jabi woreda of West-Gojjam, Amhara region. It has been observed that majority of the population, live in the rural area with crop production as the main livelihood option, arable land constitutes the largest portion of the ‘woreda’ land use type with cultivated land accounting for 49.8% (58,262 ha), uncultivable land 4.4% or 5,208 ha, natural forest 5.5% or 6,502 ha, bush land /scrubland and or natural pasture accounts 17.6% or 20,662 ha, settlement 9.3% or 10,931 ha and others account 13% or 15,389 ha. The altitude varies from 1400 to 2300 m a.s.l. This woreda is mostly characterized by Haplic Nitisols soil type which is highly productive type of soil in Ethiopia. In most of the fields, the slope gradient ranges from 0% to 5%. The project was studied to irrigate the command area through gravity close pipe conveyance system of surface irrigation with head work of wire division from Lah River. It was studied that about 45,595 ha is suitable irrigable land for surface irrigation of which about 45% (20,105 ha) of suitable land under Lah rive. An agronomic cropping pattern and production calendar of the farming system had identified for the sustainable supply of raw material for the agro-processing plant. Therefore, in the dry season using full irrigation 200ha pepper, 40ha rosemary and 10ha moringa had been under production whereas under rainfed with supplemental irrigation chickpea and field pea 130ha, white and black cumin 40ha and garlic 30ha was produced. The total investment cost of the project was estimated about ETH Birr 48.1 million. The implementation of the proposed irrigation project would require diversion of Lah River and 0.365 m<sup>3</sup>/sec of water was diverted from the river to the project command area. The minimum flow of the Lah River was 1.99 m<sup>3</sup>/sec at 95% probability. Thus, downstream impact of abstraction by the project was insignificant. Therefore, it could be concluded that there was no severe or immitigable impacts that could prevent the implementation of the proposed irrigation development.