This paper is an attempt to assess the effect of drinking water quality on health of the people living in Renigunta, an industrial area near Tirupati, Andhra Pradesh, India. Drinking water samples were collected from 40 different locations of Renigunta and analyzed for physicochemical parameters such as pH, hard ness, alkalinity, calcium, magnesium, iron, nitrates, chlorides, sulphates, electrical conductivity, total solids (TS), total dissolved solids (TDS), total suspended solids (TSS), dissolved oxygen (DO), chemical oxygen demand (COD) and bio chemical oxygen demand (BOD). The found values of physicochemical parameters were compared with the World Health Organization water quality standards. Study of all these characteristics and correlation studies indicate that in some of the studied areas water was polluted and not suitable for drinking purpose. The drinking water of the area needs some degree of treatment before consumption and prevention steps to be taken from contamination.