This study was carried out to assess the physicochemical quality river Varuna in Varanasi, India.Water samples were collected from 10 sites during January-June 2015. Pearson correlation analysis was used to assess the direction and strength of relationship between physicochemical parameters. Hierarchical Cluster analysis was also performed to determine the sources of pollution in the river Varuna. The result showed quite high value of DO, Nitrate, BOD, COD and Total Alkalinity, above the BIS permissible limit. The results of correlation analysis identified key water parameters as pH, electrical conductivity, total alkalinity and nitrate, which influence the concentration of other water parameters. Cluster analysis identified three major clusters of sampling sites out of total 10 sites, according to the similarity in water quality. This study illustrated the usefulness of correlation and cluster analysis for getting better information about the river water quality.