Purpose: Town of Woldia, a semi-arid region in the Northern Wollo region of Ethiopia, faces water supply shortage in general, though the town possesses a running stream of clean water throughout the year. This study is aimed at analyzing the possibility of using rainwater for water scarcity and non-potable water needs of the Woldia University. A careful study and analysis have been made to assess the feasibility of using rainwater in place of the tap water supply. Research design and methodology: This study was done inside the main campus of Woldia University located in Woldia town. The runoff water from the roof of buildings was studied, by the time of rainfall in the town. Also, the budget needed for implementing a rainwater harvesting system was calculated. Results: The findings of the study clearly indicates that the requirements of the water to use for flushing, cleaning, and washing toilets in the administrative buildings and classrooms can be satisfied by using rainwater as an alternative to tap water. Conclusion: Based on the results the study finds it is benefitable for the Woldia University to install the rainwater harvesting system at the earliest to solve the water problems prevailing in the current situation.