This research aimed to investigate durability of Portland pozzolana cement (PPC) mortar made with non potable water with lime. Twenty water treatment plants were found out in the Bhimavaram municipality region in West Godavari district, Andhra Pradesh, India. Approximately, each plant supplying potable water about 4000 to 5000 L/day. All plants are extracting ground water and treating through Reverse Osmosis (RO) process. At outlet, huge quantity of wasted water is being discharged into side drains in Bhimavaram municipality. One typical treatment plant was selected, and water at outlet was collected and Physical and chemical analysis was carried out as per producer described in APHA. The effect of plant outlet water(POW), lime water(LM), and plant outlet water with lime (POWL) on physical properties i.e., setting times, compressive strength, and flexural strength and durability were studied in laboratory and compared same with reference specimens i.e., made with Distilled Water (DW) as mixing water. No significant change was observed in initial and finial setting time in POW, LW, and (POWL) as compared with reference specimens made with distilled water (DW). Compressive strength was significantly increased with LW and (POWL) specimens compared to that of reference specimens. Reference and test specimens immersed in 4% concentration of sodium sulphate solution for 180 days period, test specimens of POW and reference specimens compressive strength loss was same, but test specimens of POWL and LW durability was better than the reference specimens. XRD technique was employed to study the mineralogical analysis.