This research was conducted in order to assess the environmental impacts of Finchaarnirrigation project using GIS and remote sensing techniques. Because of the limitedrnresources only some environmental parameters were selected. These parameters arernnatural vegetation, soil/land, water quality, climate and health conditions.rnThe normalized vegetation index (NDVI) analysis was used to detect the spatial andrntemporal change of vegetation biomass in the study area. The result indicated that thernnatural vegetation biomass is declining. This is mainly due to the expansion ofrnagricultural land and escalating human made structures in the area.rnThe water physico-chemical analysis demonstrated that the down stream water has morernchemical substances and degraded physical properties than the up stream counterparts.rnThe direct leakage of industrial liquid waste and the agro-chemicals from irrigation fieldsrnare supposed to contribute for this result. The GIS analysis of a 100 meter buffer aroundrnMajor rivers and tributary streams is found to be a necessary action to mitigate thernproblem of pollution.rnThe soil chemical and physical property analysis in the irrigated and non irrigated fieldsrnreveals that the soil samples taken from irrigated fields contain higher phosphorous,rnNitrogen and organic carbon compared to its counter parts. The use of agro-chemicals inrnthe irrigation fields contribute for the result.rnFrom the twenty two years rain fall, temperature and humidity data no abrupt inclining orrndeclining trend is observed that could tell the possible impacts of the project.rnThe post irrigation development years witness that some water born diseases and malariarncase records have increased. It is also found out that expansion of irrigation fields and thernrespective Malaria case records are positively correlated.rnGenerally, despite the significance of the Finchaa irrigation project, it has negativernenvironmental repercussions. This is evident from vegetation cover distraction, waterrnquality deterioration in the down stream area, alteration of soil physical and chemicalrncomponents and increasing health threats. If the current condition continues the problemsrnmay out weight the benefits of the irrigation project. Thus in the project site andrnadjoining areas urgent environmental conservation is necessary. This helps to sustain thernexisting and revitalize the fading resources