BackgroundAccess to safe water and improved sanitation contributes to the human heath and socio-economic development of a country. This study was conducted to assess the latrine and pure water coverage and related factors among dwellers of Negele town, Arsi zone, southeast EthiopiaMethodTwo kebeles (administrative units) were randomly selected from each zone of the town to collect data via questionnaires from randomly selected households (380), via interview from purposely selected key informants (40) and via personal observation employing a cross-sectional survey design from April-May 2018. Data were analyzed using microsoft Excel program and the results were expressed using table as frequencie and percentages . ResultLatrine coverage of the town was low (45%) mainly due to shortage of land and fund. Among the available latrines, 75% were closer than recommended distance (6m) to kitchens, 52.3% lacked roofs, 53% lacked doors, and 100% lacked hole cover and water to clean. Latrine lacking households defecate in various sites of the environment with problems on environmental sanitation, personal safety and health issues. Similarly, pure water coverage was very low (7.6%) as a result of deficient water sources and non-functioning pipe lines forcing the people to use unprotected water source or expend much time in fetching water from private taps.Conclusion Latrine and pure water coverage of Negele town was far less than the national Millennium Development Goal (MDG) which targetted 100% improved hygiene and sanitation coverage by 2015. The big gap demonstrated by this study may intiate the admistration of the town to provide land, arrange loan or search for aids for the construction of standardized private and public toilets. Searching additional water sources like underground water and maintaining non-functional and/or constructing new pipe lines may also be promoted as a result of this study to improve the pure water coverage of the town. Public participatory plans may also be designed to solve shortage of latrine and water coverage of the town via continuous awareness creation.