Groundwater movement beneath watershed divide is one component of the hydrological cycle that is typically ignored due to difficulty in analysis. Numerical groundwater models, like TAGSAC, have been used extensively for predicting aquifer responses to external stresses. In this paper TAGSAC code was developed to identify the inter-basin groundwater transfer (IBGWT) between upper Awash River basin (UARB) and upper rift valley lakes basin (URVLB) of Ethiopia. For the identification three steady state groundwater models (for UARB, URVLB and for the two combined basins) were first created and calibrated for the 926 inventoried wells. The first two models are conceptualized by considering the watershed divide between the two basins as no-flow. The third model avoids the surface water divide which justifies IBGWT. The calibration of these three models was made by changing the recharge and hydrogeologic parameters of the basins. The goodness of fit indicators (GoFIs) obtained was better for the combined model than the model that describes the URVLB. Furthermore, the hydraulic head distribution obtained from the combined model clearly indicates that there is a groundwater flow that doesn't respect the surface water divide. The most obvious effect of IBGWT observed in these two basins is that it diminishes surface water discharge from URVLB, and enhances discharge in the UARB. Moreover, the result of this study indicates potential for internal and cross contamination of the two adjacent groundwater.
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