Discharge of liquid and solid waste from Jimma town has resulted in a gradual degradation of the quality of the river water feeding the Gilgel Gibe dam, which was constructed for the development of the hydroelectric potential of the Gilgel Gibe River. In general, wastewater is not treated, which makes the use of river water problematic. In addition, the region around the dam mainly consists of farmlands; runoff from the fields results in pollution by pesticides, including DDT. The current situation of waste(water) production in and around Jimma (including the campus of Jimma University) will be discussed, along with the expected impact on the water quality in the Gilgel Gibe reservoir. Possibilities for remediation will be discussed.