Ferrous block metals are used frequently in large quantities in various sectors of industry for making automotive, furniture, electrical and mechanical items, body parts for consumables, and so forth. During the manufacturing stage, the block metals are subjected to some form of material removal process either through turning, grinding, milling, or drilling operations to obtain the final product. Wastes are generated from the machining process in the form of effluent waste, solid waste, atmospheric emission, and energy emission. These wastes, if not recycled or treated properly before disposal, will have a detrimental impact on the environment through air, water, and soil pollution. The purpose of this paper is to determine the impact of the effluent waste from the machining process on the environment through water analysis. A twofold study is carried out to determine the impact of the effluent waste on the water stream. The preliminary study consists of a scenario analysis where five scenarios are drawn out using substances such as spent coolant, tramp oil, solvent, powdered chips, and sludge, which are commonly found in the effluent waste. The wastes are prepared according to the scenarios and are disposed through the Institute of Product Design and Manufacturing (IPROM) storm water drain. Samples of effluent waste are collected at specific locations according to the APHA method and are tested for parameters such as pH, ammoniacal nitrogen, dissolved oxygen, biochemical oxygen demand, chemical oxygen demand, and total suspended solids. A subsequent study is done by collecting 30 samples of the effluent waste from the machining operations from two small- and medium-scale enterprise locations and the IPROM workshop to test the quality of water. The results obtained from the tests showed high values of chemical oxygen demand, ammoniacal nitrogen, and total suspended solids when compared with the Standard B specification for inland water bodies as specified by the Department of Environment, Malaysia.