Dire Dawa, the second largest city of Ethiopia, has been suffering from disastrous floods in its history. Flooding is a common phenomenon and the major socio-economic problem of cities in Ethiopia especially cities like Dire Dawa. Dire Dawa, which is located at the foot hills of eastern Harerge highlands, has been repeatedly hit by powerful flood disasters. Flooding at different time destroyed homes, public institutions, market places with their properties, infrastructures, crops in the field, livestock, etc. and very little academic literature exists on the causes of floods of ephemeral rivers and their Socio-economic impacts, particularly, the direct and indirect impacts separately. This book, therefore, provides a new direction of employing the SC-CN model in a small watershed in tropical environment, shows the inundation analysis to present areas of inundated and depict the impacts inflicted. Moreover, it shows the importance of utilizing ECLAC methodology to show about the direct and indirect impacts of ephemeral Rivers on the socio-economic sectors for policy makers in order to make sound decision.