Water scarcity in these days is a real threat to food production for millions of people in arid
and semiarid areas of developing countries. As water becomes one of the most scarce
resources in these poor developing countries, the only option available to get out of poverty is
to improve the productivity of water in every sector of production. Currently, in some of water
stressed areas of Ethiopia, water harvesting technologies are being introduced in the view to
secure food through irrigation practices. The major objective of this paper is, therefore, to
estimate livestock, domestic use and crop water productivities of SG-2000 water harvesting
pilot projects in Ethiopia. The research work is entirely based upon secondary data obtained
from various organizations and publications. The water productivity magnitudes for livestock,
domestic and crop productions are found to be Birr* 40.71, 213.42 and 8.04 per m3 of water
respectively. To show the importance of the opportunity cost of water, these productivity
values are recalculated taking the market price of water in rural areas as the denominator. As
the result, livestock, domestic use and crop water productivity magnitudes, respectively, are
birr 1.63, 8.54 and 0.32 per birr of water. The research finding shows that water used for
domestic use and livestock generates the greatest benefit for rural households.