The major springs in the Infranz catchment are a significant source of water for Bahir Dar City and nearby villages, while sustaining the Infranz River and the downstream wetlands. The aim of the research was to understand the hydrogeological conditions of these high-discharge springs and the recharge–discharge relations in the Infranz catchment. The Infranz catchment is covered by highly pervious and young quaternary volcanic rocks, consisting of blocky, fractured, and strongly vesicular scoriaceous basalt. At the surface, these rocks crop out as lineaments forming ridges, delimiting closed depressions in which water accumulates during the rainy season without causing surface runoff. Geology and geomorphology thus combine to produce very favorable conditions for groundwater recharge. Three groundwater recharge methods were applied to estimate groundwater recharge and the results were compared. Groundwater recharge was calculated to be 30% to 51% of rainfall. Rapid replenishment raises the groundwater level during the rainfall period, followed by a rapid decline during the dry season. Shallow local flow paths discharge at seasonal springs and streams, while more regional and deeper flow systems downstream sustain the high-discharge springs and perennial Infranz River. The uptake of 75% of spring water for the water supply of Bahir Dar City, local extraction for domestic and small-scale irrigation use from springs, rivers and hand-dug wells, encroaching farming, and overgrazing are exacerbating wetland degradation.