Levels of trace metals in SITE (Sindh Industrial Trading Estate), and its adjoining residential area have been determined. Altogether 39 samples were collected from different industrial and residential colonies around SITE area. The elevated levels of trace metals found in these samples, determined by AAS, are due to indiscriminate disposal of industrial effluents. The average and ranges (given in parentheses) of these metals, in the area were found to be Fe, 0.766 (0.012-10.85) ppb, Mn0.028 (0.002-0.165) ppb Zn 0.564 (0.016-4.206) ppb, Cu 21.25 (1.3-61.6) ppb, Pb 23.24 (0.72-199.25) ppb, Cr 21.20 (3.2-173.5) ppb, Ni 9.65 ppb (below detection limit in single sample to be as high as 38 ppb) and Cd 0.19 ppb (below detection limits in nine samples maximum concentration was found to be 0.64 ppb), Moreover some significant correlations ( values given in parentheses) were also estimated for Mn & Cd (0.7206), Zn & Ni (0.5722), Cu and Pb (0.5621) for the industrial area and Fe & Mn (0.6176), Cu % Cr (0.7715) for the adjoining residential area. Some other important correlations were obtained, for Mn % NO2 (0.568) Cu & NO3 (0.5305), Ni & Cl (0.6537), Ni & SO4 (0.5818), and Cd & NO3 (0.5146) for ground waters of SITE area. The chemical quality of these waters shows a highly dissolved salt content and the percentage compositions of mineral contents is almost same as that sea water, which indicates that three might be seawater intrusion in this particular area and which be due to excusive water pumping and low rain fall.