Soil degradation from various inorganic and organic contaminants, is not only an ecological risk, but simultaneously it is also a Socio-economic issue, such soils become poor in physicochemical properties, susceptible to erosion, loss of productivity, sustainability and diminished food chain quality. Soil samples were collected from different areas near Kaliasote dam of Bhopal city (M.P.) at 0-25cm depth for analysis. These sites were selected in each area for collection of soil samples from ten different locations. Analysis were carried out for selected parameters i.e. pH, electric conductance, organic carbon, total nitrogen, CaO, Mn, Zn and Mo etc. Results indicate the variation in parameters during the year 2006-2007. The study concluded that the continuous application of effluent appears to deteriorate soil quality in the area.