Abstract: In recent years, Agile Methodology for software development has been embraced by many organizations where traditional waterfall approach has failed. Agile method promises higher software quality, reduced risk and more cost savings as compared to waterfall. Many organizations using Agile have realized these benefits for online transactional processing (OLTP) applications and have recently tried to apply this method and gain benefits for online analytical processing (OLAP) or data warehouse applications. In this paper, we aim to explain the challenges faced during development in datwarehousing projects using waterfall approach and how best the agile methodology can be applied for these types of projects.