Background: Access to safe water and sanitation are universal need and basic human right, but the provision of quality water and improved sanitation remains a challenge in many African countries including Ethiopia. Objectives: The study investigated drinking water quality, sanitation-hygiene practices and the potential of Moringa stenopetala seed powder for the purification of water in Bale Zone, Southeast Ethiopia. Methodology: A community-based cross-sectional study was conducted among 422 randomly selected households in Robe and Ginnir Towns. Data were collected by interviewer-administered structured questionnaires from June 2012 to August 2013. An observation checklist was used to observe the sanitary condition of water sources. A total of 71 water samples were collected using sterile glass bottles in accordance with the standard method of American Public Health Association APHA. The physicochemical and bacteriological water quality analyses were done in Addis Ababa Environmental protection and Oromia water and Energy laboratories. The efficiency of Moringa stenopetala seed powder for removal of turbidity, hardness, and nitrate was evaluated. Data were analyzed SPSS Version 21.0 for the window. Descriptive analysis was done for appropriate variables. Logistic regression was used to identify the factors associated with under-five diarrhea. The results were presented using adjusted odds ratio and P-value of < 0.05 was used to declare significance association. Results: From the total sample, 401 respondents participated making a response rate of 95%. More than one third (37.9%) of the respondents were found to use pipe water. Two hundred and eighty (69.8%) of households wash storage containers before refilling and 325 (81%) of households were using separate containers for water storage. Two hundred seventy (67.3%) of the households had pit latrine. Prevalence of childhood diarrhea was found to be 50.1%. From the logistic regression model, those households having access to clean water source are 68% less likely to have under-five diarrhea, the households having clean storage of drinking water are 45% less likely to have under-five diarrhea in their home, and those households having poor latrine sanitation are 68% more likely to have under-five diarrhea in their home. Seed powder of 200mg/l Moringa stenopetala reduced the Nitrate concentration doses from 5.49mg/l to 8.18mg/l, a 75mg/l was reduced the turbidity from 4.49NTU to 1.07 NTU. A total hardness of 427 was reduced by 7.8% after treatment with powder seed of Moringa stenopetala. Conclusion: Prevalence of childhood diarrhea was high and it is associated with lack of access to a clean water source, poor sanitation of drinking water storage and latrine. Prevalence of open field defecation was remarkably high. The iron content of drinking water was above the range of World Health Organization standards. Moringa stenopetala seed powder has efficiency in the reduction of total and faecal coliform, turbidity, hardness and nitrate level in drinking water Recommendation: Health education on water handling, sanitation and low-cost effective water treatment methods like Using Moringa stenopetala seed should be practiced at the household level. / Environmental Sciences / Ph. D. (Environmental Science)