Safe, adequate, and accessible supply of water together with proper sanitation are surely basic needs and essential components of primary health care and vital resources in which access to safe and reliable water supplies has received increased government attention in Ethiopia. As a result, the national coverage rate for this service has gradually improved. Yet still some central and peripheral areas of urban l do not get drinking water from an improved water source. While expanding improved water source schemes is generally essential, it is equally important to ensure that the schemes have increased users’ satisfaction with water quality and availability for everyday use. Using household survey, and interviews, focus group discussion and customer forum were the main data of the study. The main aim of the study was to investigate the challenges of urban water supply in Addis Ababa with particular reference to Bole and Kolfe Keranyo sub cities and the effect of access to an improved water source on users’ satisfaction with both quality and availability of water.