Precipitation is the major water source for agricultural production in the Central Rift valley of Ethiopia. Limited and erratic precipitation often results in low crop yields and sometimes in total crop failure. In recent years, rainwater harvesting was promoted to overcome the shortage of water for agricultural and domestic uses. Implementation of rainwater harvesting was shown to have improved drinking water problem to a certain extent, and is being adopted to improve crop production. Moreover it is promoted to adjust agricultural structure to increase farm’s income and improve living environment. Rainwater harvesting has great potential to achieve sustainable agriculture in study areas.