In this study, variations in physicochemical parameters and heavy metal contamination in water-sediments of a natural stream in the Durgapur industrial zone have been investigated. pH, COD, Cl − , CN − and heavy metals, viz. Pb, Hg and Fe concentrations in channel water, are higher than Indian standards. Metal concentrations in sediments are many folds higher than background value, where Pb, Cd, Hg and Cr contents exceed the sediment quality guidelines. Contamination factor (C f) value of channel water follows the order of Hg > Pb > Fe > Cr > Cd > Cu > Ni, whereas enrichment factor and geoaccumulation index (I geo) values in channel sediments are in the order of Hg > Cr > Ni > Pb > Cd > Fe > Cu. The assessment of contamination index (C d), modified contamination index (mC d) and pollution load index indicates that channel water and sediment samples in the study area are strongly contaminated by heavy metals. Sediment samples based on PELQ and ERMQ are highly toxic, with high degree of potential ecological risk at all the monitored stations. Multivariate analysis infers that heavy metals in channel water and sediments are majorly sourced from industrial discharge.