The present study was conducted to estimate average annual soil loss and erosion risk mapping in Degem watershed using GIS and Remote sensing Tools and RUSLE model parameters adapted to Ethiopian condition .The result of the present research reveals that about 92,073 ton/ year of soil loss from 14,329 ha area of entire watershed with about 6.43 t/ha rate of soil loss and with the average annual soil loss 5.00 t/ha/year average annual soil loss was observed. Based on spatial distribution of potential annual soil loss, soil erosion is classified into low, moderate, high and very high erosion severity classes with area coverage of 1,079 ha, 3,619 ha, 767ha, and 8,864 ha respectively. It was concluded that, low to moderate soil loss classes (16,634 t/year) contribute about (18.06 %) soil loss which cover about 33% (4,698 ha) of the watershed area. Also high to very high soil loss severity classes (75,439 t/year) contribute (81.9%) soil loss and cover about area 9,631ha (67.2%) of the total area coverage of watershed. It was recommended among the others that, it is good if concerned body design policies and strategies that support for creating and strengthening environmental friendly non-farm/off-farm income generating activities.

Keywords: Soil Loss, Erosion Risk, GIS and Remote Sensing, Land Cover, Land Use and RUSLE model