A study was carried out to assess the effect of Hudiara Drain on groundwater quality in its vicinity, particularly some well planned residential neighborhoods such as Khayaban-e-Amin and Valencia in the city of Lahore (Qadeer, 2011). A total of eleven sampling points were selected. Three samples were collected from Hudiara Drain and eight samples were drawn from deep and shallow groundwater wells. Eight physical, chemical and biological parameters including pH, turbidity, total dissolved solids, total hardness, chloride, total iron, lead and total coliforms were examined and compared with the desired values mentioned in National Standards for Drinking Water Quality (NSDWQ) and World Health Organization (WHO) guidelines. The test results indicated that physical quality of all groundwater sources was satisfactory. Chemical quality of all groundwater sources was satisfactory for total dissolved solids (TDS), total hardness, and chlorides, however for total iron and lead the water quality was not meeting NSDWQ and WHO guidelines. Bacteriological contamination was also detected in almost all groundwater samples. The presence of higher concentrations of lead in groundwater certainly indicates that there is an external effect on groundwater. It is recommended that release of industrial wastewater in Hudiara Drain should be controlled and strictly monitored. In addition, proper disinfection should be practiced at the tube wells to ensure safe drinking water at the consumers end.