Laterites in Odisha cover ≈7000Km2 (4.5%) surface area of the state. As hard and vesicular, laterite blocks are common local construction materials. The latsol areas are quarried open air and water bodies are formed in those ditches. Fresh water bodies within the mines cover ≈60-70% of the quarry area during rainy season. Those water bodies have poor in flora and fauna and specially aqua habitats. The water quality parameters are of concern in those ferruginous laterite zone. The aquatic life depends on the physical, chemical and biological parameters of water but adequate research has not been done to assess the cause of paucity of aqua habitats in these semi dead zones. Evaluation of toxic chemicals, physical parameters and finally tried to find causes that has made these wetlands as semi dead zones and very poor growth of aqua habitats and consequently the avifauna and floral diversity. These wetlands cannot be used even for economic fish or prawn farming, for recreation and domestic uses except less hygienic bathing. The present search is to identify the causes of unsustainable environments for aquatic life. Assessment of laterite area in the Chilika catchment has been evaluated using supervised classification of multispectral Landsat-8 images. The method found the area to be 744.456Km2 consideringpHas parameter. The toxic elements, metals, metalloids and REE?s were found by using XRF Spectrometer, and BOD/ COD. The concentration of physical, toxic alkali/alkaline earth elements, harmful REE?s and radionuclides and biological parameters are sorted out causing the meager flora and fauna. The stagnated water bodies in laterite mines are with overdoses of DO, and Fe and Al contamination.