This study was carried out to investigate quality of water sources and bottled water as compared to water quality standards. Sanitation conditions of the factories were also studied. The quality of water sources such as tap water, ground water and tap water mixed with ground water used for producing bottled drinking water were analysed for the physical, chemical and biological parameters. Physical and chemical quality of water sources did not comply with standards and thus cannot be consumed directly. Some treatment is required before consumption. Quality of bottled drinking water produced from different water sources and different size of containers comply with standards, except physical parameter of bottled drinking water produced from ground water of one factory with net content 18-20 liters. With regards to solid waste management, two factories have garbage containers with cover and also separate the waste. Other factories store garbage in baskets without cover and in plastic bags. Regarding wastewater management, three factories discharge wastewater to their own pond or wastewater treatment plant (WWTP); other four factories discharge wastewater directly to the public canal. © 2010 IEEE.