Soil erosion is one of the major causes of land devastation in towns and villages in South-eastern Nigeria. It is a major threat to the soil resource, soil fertility, productivity, and to food and fibre production, mainly on farm and range lands. Hundreds of people are directly affected every year and needing to be re-located The hydro geotechnical properties of the soil at erosion prone areas and Hydrochemical properties of groundwater in Orlu and environs, Imo State, Nigeria, were determined with a view to ascertaining the effect of gullies on the water quality. Analysis of the results show that ion concentrations are below WHO standard except for heavy metals concentration of lead, mercury and cadmium in groundwater and copper, cadmium, lead and mercury in surface water. Dominant water character in the study area using Piper Trilinear diagram and Schoeller semi logarithm diagram was analyzed to be calcium-sulphate waters for groundwater and sodiumchloride- bicarbonate waters for surface water.. It is recommended that Afforestation should be practiced to provide vegetative cover that will reduce the impact of raindrop energy and that drinking water in the study area is treated.