Bhopal, the capital of M.P. has twenty five lakes from which upper lake, lower lake and shahpura lake are more important lakes. There are almost 115 hospitals and nursing homes in Bhopal and Many hospitals are going to be setup here, which will increase the pollution load on water bodies. The hospital effluent and sewage contribute the source of pollution in lake water. The physical and chemical parameters have been analyzed. The results show that the hospital effluent deteriorates the quality of lake water significantly. Present study reveals the effect of discharge of untreated hospital effluent into the lake.