The progenitor of the present university is the previous Arba Minch Water Technology Institute.
Even though Ethiopia is endowed with a vast potential of water resources, lack of efficient management and utilization of the resource has increased the susceptibility and vulnerability to drought and a consequent famine and disaster. Thus Arba Minch Water Technology Institute was established in 1986 G.C. with the general objectives of promoting the advancement of water resource development and environmental protection. It was conceived with the intention of providing short term and long-term training, conducting research and rendering consultancy services in the water sector. Three departments: Hydraulic Engineering, Irrigation Engineering, and Sanitary Engineering were organized to serve the function. The institute started its academic activity by receiving 181 students in two degree, two advanced diploma and two diploma programs. In the succeeding years, Arba Minch Water Technology Institute has undergone several curriculum revisions, program expansions and organizational readjustments. In 1991 a complete revision of the curriculum has been undertaken and all water departments were terminated and replaced by Water Resources Engineering program in both advanced diploma and degree. After a thorough review and evaluation of the curriculum, the three terminated programs were realized to be important and reinstated in 1996. A major restructuring, however, was made in 1997 when three B.Sc. degree programs (Civil, Electrical and Mechanical Engineering) were added. The institute was administrated under the then Water Resource Commission until 1993 and then transferred to the Ministry of Education.
The present Water Technology Institute retains the initial objectives that had led to the establishment of the then Arba Minch Water Technology Institute. The postgraduate school, which was launched in the 2002/03 academic year, is now running M.Sc. degree programs in three areas of specialization namely Hydraulic and Hydropower engineering, Irrigation Engineering, and Hydrology and Water Resource Management. At present, the university admits students in both undergraduate and post graduate programs.