Squatter settlements have several impacts on the urban areas. These impacts include: environmental degradation, deterioration of public health, urban impacts, social impacts, economic impacts, and cultural impacts. The main characters of squatter areas are: overcrowding, low level of health services, poor environmental conditions, increase of unemployment and ignorance, and high level of communicable diseases. So that care should be given to know their environment and health conditions to point out their real problems and their main causes. This study aimed at evaluating the environmental sanitary conditions of two squatter areas located in Alexandria and their effects on the health of people who live there. Environmental and health survey of two selected areas were done by filling precoded questionnairs through house visits of these areas during year 2001. The results revealed that EL-Madabegh area was surrounded by many industries and nearby to EL-Max tanneries, which is characterized by bad smell of H,S.It suffers from lacking of water houses connections, where 91% of the families stored water in containers from public water taps . Also 66.9%of the houses were surrounded by piles of solid waste that led to spread of rodents and insects. Regarding to El-Tobgeyya, it was more better than EL-Madabegh, and it was characterized by poorly paved streets, ponds of stagnant water, and irregular collection of solid waste which resulted in the prevalence of insects and rodent in this area. With respect to health status, it was found that the high prevalence of parasitic diseases in EL Madabegh was an indicator of low personal hygiene and poor environmental conditions. The spread of some diseases was due to several factors as: high crowding index [3.3], low standards of living, and irregular solid waste collection. Accordingly, this study recommended that these squatter areas must be re-planned with the resettling of the families in sanitary houses provided with all environmental and health services.