The physico-chemical parameters of water were assessed between Kalatoly coast and a shrimp hatchery to understand the present status of water quality. This study was conducted from January 2008 to June 2008 at Coxs Bazar, Bangladesh. Water samples were collected twice monthly from the Kalatoly coast. Similarly, the ultra violet treated and larval rearing tank water were also collected from a shrimp hatchery situated at Kalatoly. Water temperature, salinity, dissolved oxygen and pH were more or less similar both in sea water and UV treated water but were highly variable in the water collected from larval rearing tank (LRT). The water NO3-N NO2-N, PO4, Fe and total dissolved solids were moderately variable among the sea water, UV treated water and LRT water. Study suggests that the existing hatchery activities are sustainable in the coast of Kalatoly which is greatly influenced by the water quality of adjacent coastal water.