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Physicochemical characteristics of groundwater and municipal water in Amalner town by taking water samples from five different stations. The study was carried out by collecting four groundwater samples (Two open well, two bore well) and one municipal water sample during November 2007-February 2008. The results were compared with standards prescribed by WHO and ISI 10500-91. Total 15 parameters were analysed. It was found that the underground water was contaminated at few sampling sites namely Shirud Naka, Cotton Market and Shivaji Nagar. The sampling sites Dekhu road showed physicochemical parameters within the water quality standards and the quality of water is good and it is fit for drinking purpose. The correlation coefficients were calculated for water quality assessment.