Groundwater is one of the most important sources of fresh water in Egypt with specific reference to cities located away from the Nile River such as in Sadat city where groundwater constitutes the main source for drinking water. The present study pertains to the evaluation of the physico-chemical characteristics of the groundwater in and around an industrial zones located in a semi-arid region wherein the people of the terrain are entirely dependent on the groundwater for their needs. The data obtained shows that the average concentration of 0.0018 for of NO3-, 0.028 for Cu, 0.013 for Pb, 0.0019 for Cd, 0.15 for Zn and non-detected for Cr6+ in groundwater wells and pipelines during the period of 2006 to 2008. These results revealed that although the levels of nitrite, lead and cadmium of most samples in the groundwater and pipelines undergoes the Egyptian limits but it sometimes exceeds more than the limits of WHO health-based guideline for drinking water by double to three fold.