Untreated sewage of Hyderabad city is the key source of increasing pollution through discharge of sewage water into Phuleli canal causing contamination and hazards to the health of local people and irrigation system. This canal provides water to a population of more than two million of three major districts in lower Sindh along Akram Wah. Sewage water from Fullali canal was sampled from different station points and analyzed for pH, electrical conductivity (EC), total dissolved solid (TDS) residues, chlorides, hardness, alkalinity, dissolved oxygen (DO), and different cations like sodium (Na), calcium (Ca), magnesium (Mg), and potassium (K) to observe the effect of municipal discharge upon the quality of water used for irrigation purpose and also for drinking purpose. A significant number of samples showed elevated concentration of salts along the Phuleli canal which reached up to maximum values at three sampling stations. This canal water contaminated with pathogens and harmful toxic chemicals from effluents is hazardous to both the ecosystem and all life forms whose survival depends on it.