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Most of the poor people residing in the rural areas of poor countries are usually suffering from poverty in general and food insecurity in particular. Food insecurity by its nature of chronic and transitory is the serious problem of Ethiopia. So far, various studies, workshops, seminars, etc were conducting about the problem and its solution. This paper also tries to focus on seeing the role of irrigation and water resources development in overcoming the food insecurity of rural households. Regarding challenges of the water resources development, the role water resources development or irrigation is playing big role in overcoming households food insecurity. Study was identified many constraints including management, economic and institutional. But lack of investment is one and main challenge of the irrigation development. At last, the study concluded that policy maker and other development partners must give attention and high priority in improving economic access of resources like small scale irrigation to poor small scale households, which enable them out from the prison of poverty and food insecurity.