Background Watershed resource conservation is important for the wellbeing of the environment and communities. Understanding farmers' socioeconomics and watershed conservation practices help in determining necessary interventions to address environmental threats. The study area is important at regional and national level due to the hydroelectric dam of the mega power project. This study deals with the farmers' socio economic and conservation practices of Gilgel Gibe watershed. The study targeted

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... 305 households in 4 districts of Jimma Zone surrounding the Gilgel Gibe Reservoir I. Semi-structured questionnaire was administered via interviews and focus group discussions led by trained survey interviewers. Result The findings of the study indicated that majority of farmers in the watershed have adequate knowledge, positive attitude and bad practice towards watershed conservation. To achieve better means of subsistence and improve their living condition farmers are forced to put stress on natural resource, degrading watershed and increase pollution loads that affect water quality of tributaries and reservoir. Conclusion Based on the present scenario, we forwarded stakeholders to establish team from the elders, officials at woreda and zonal level to initiate commitment, coordinate conservation activity and promote households' income generating activities at homestead level like conservation agriculture.