Iron is one of the most troublesome elements in water. Rainwater as it infiltrates the soil and underlying geologic formations dissolves iron, causing it to seep into aquifers that serve as sources of ground water. Although iron is an essential mineral for human, its presence in ground water above a threshold level make the water unusable mainly for aesthetic considerations such as discoloration, metallic taste, odor, turbidity and staining of laundry. Iron is mainly present in water either the soluble ferrous iron or the insoluble ferric iron. Water containing ferrous iron is clear and colourless due to its soluble nature. On exposure to air the ferrous iron is converted to ferric iron and turns water reddish brown appearance. Moreover, iron oxides, which are formed in reservoirs upon aerial oxidation of dissolved iron promotes growth of microorganism. A method for removal of iron from water by using the modified coconut shell charcoal has been systematically investigated. The iron removal results from the adsorption of oxygen followed by the oxidation of Fe2+, catalyzed by the adsorbent carbon surface. The Fe3+ precipitates on the solid, forming a hydrated iron oxide coated carbon that is also able to absorb iron. The present modified coconut shell charcoal has been found to be very effective and remove iron to below 0.3 ppm in water without increasing the pH above the acceptable limit.