The Varahi Irrigation project dam site is located at approx. 6 km from Siddapura, Kundapura taluk, Udupi district with latitude of 13°39' 15" N and a longitude of 74°57'E. Groundwater quality in the study area was evaluated for its suitability for drinking and irrigation purposes by collecting 36 samples during pre-monsoon period of the year 2005. The quality assessment was made by estg. physico-chem. parameters, major cations and anions, besides irrigation quality parameters like SAR,% Na and RSC. It was also noticed that alk. earth elements exceeded alkalies concn. and weak acids exceeded the strong acid element and HCO3-was the predominant among anions, while Ca-Mg dominates cations. Classification of water samples based on SAR and Salinity Hazard revealed that majority of the samples were under excellent (S1, 88.88%) and excellent (C1, 80.56%) to good (C2, 8.33%) categories resp. Gibbs' ratio illustrates that majority of water samples fall in the pptn. dominance field, giving an indication that the aquifer recharging is by means of rain/river water