Population growth, urbanization and competitive economical activities increase the stress on water resources which increased the dependency on Groundwater significantly. Limited supply sources unplanned land and water resources developments and improper waste management especially on the peri-urban areas induced the inconsistency between water supply and demand. To meet out the gap between demand and supply, the informal groundwater trading is emerging in the urban and peri-urban fringes. The present study analysed the socio economic status, perceptions of groundwater dependents and economy of groundwater market in the study villages to understand the prevailing scenario and status of peri urban groundwater system.