Water requirement to meet agriculture, domestic, industrial and other demands indicate the need for regeneration of waste water. Industrial waste water is being used in dry areas. Waste water of pulp and paper industry (brown with unpleasant smell) is usually alkaline in nature, has high suspended solids, total solids, COD, BOD and toxic odorous substances. It was observed in the study areas that the effluent of paper and pulp mill altered the physicochemical characteristics of the soil. Irrigation with paper and pulp mill effluent has lead to increase the soil pH (6.6-9.0), electrical conductivity (0.41-0.52 dSm-1), organic carbon (3.2-5.9 gkg-1) and available nutrients. The concentration of N, P, K and Na increased in the soil after irrigation with effluent as compare to irrigation with well water. Soil samples has been collected from the affected areas and from the sites where irrigation done with the help of well water. Irrigation with effluent of pulp and paper mill in this area has lead to a heavy build up of contaminants in the soil. Heavy metals were found not to be in permissible limits.