This article assesses the relation between water management, environmental degradation and poverty through a stakeholder analysis focused on the status and management of water resources. It draws from the situation observed in the Ethiopian Central Rift Valley, an endorheic basin south of Addis Ababa where human activities have resulted in the degradation of most freshwater ecosystems and where the vast majority of the population lives in poverty. It proposes a shift in water governance that focuses on improving economic and social welfare and enhancing environmental sustainability. This shift can help overcome some of the problems affecting the Central Rift Valley, namely: (1) the overexploitation of water resources; (2) poor water quality; and (3) the high dependency of the population on water resources to sustain their livelihoods