The present study assesses the impact of coal mining on surface and groundwater resources of Korba Coalfield, Central India. Accordingly, water samples collected from various sources are analyzed for major ions, trace elements, and other mine effluent parameters. Results show that the groundwater samples are slightly acidic, whereas river water and mine water samples are mildly alkaline. Elevated concentrations of Ca2+, Na+, HCO3 −, and SO4 2− alongside the molar ratios (Ca2++Mg2+)/(SO4 2−+HCO3 −) 1 suggest that silicate weathering (water-rock interaction) coupled with ion exchange are dominant solute acquisition processes controlling the chemistry of groundwater in the study area. The overall hydrogeochemistry of the area is dominated by two major hydrogeochemical facies (i.e., Ca–Cl–SO4 and Ca–HCO3). Analysis of groundwater and river water quality index (GRWQI) elucidates that majority (82%) of samples are of “excellent” to “good” category, and the remaining 12% are of “poor” quality. Similarly, the effluent water quality index (EWQI) indicates that 6 out of 8 samples belong to excellent quality. Concentration of trace element constituents such as As, Zn, Cu, Cr, and Cd is found to be well within the stipulated limits for potable use, except for Fe, Mn, and Pb. Suitability of water samples for irrigation purpose, established using standard tools like Wilcox and USSL diagrams, reveal “excellent to permissible” category for majority of the samples. The present study also substantiates the effectiveness of the measures implemented for the treatment of mine effluent water.