The Ethiopian government has been working on rainwater harvesting (RWH) for more than three decades. Despite its efforts, the results are not as expected. Different barriers have posed challenges to promoting RWH in Ethiopia. This study was done to identify the main problems and obstacles, and reflect on potential solutions. As a result, absence of clear policy definitions, lack of sustainably implemented projects, poor societal perceptions of RWH, local professionals lacking proper knowledge, and initial investment costs are found to be major causes of poor outcomes. Considering the site-specific nature of water issues, the authors propose various management strategies such as policy-oriented promotion, formulation of design guidelines, proactive planning, collaborative research, and integration of RWH with cost covering practices.