Yejube is one of the rapidly developing towns in Ethiopia. Difficulties of acceptable water supplies and reduction of non-revenue water remains one of the main challenges facing the town. This study deals on the analysis of water demand scenario and future water demand forecasting for Yejube town. A mixed cross-sectional research method was implemented to analysis the past and future water demand of the town. The outcome of this study found that the municipal average daily water consumption per capita was 14.3l/c/day and 16l/c/day respectively in 2017 and 2018. The water supply coverage of the town is low when we compare the regional and international standards. Water production and demand are unbalanced; due to continuous interruption of the water supply system inhabitants are facing water related problems. And also, 20.38% and 24% of the water production lost in the distribution system before reaching to the end customers. The population of the town in 2040 expected to reach24807 with an average daily per capita water consumption of 36.7l/day. Generally, delivery of hygienic water supply is one of the key influencing factors that significantly subsidize to the socioeconomic renovation of a country by enlightening the health thereby increasing life standard and economic productivity of the society. Therefore, accurate forecast of future water demand plays a crucial role in optimizing the need for potable water resources and effective water allocation among competing users.