A significant number of zoonotic emerging and re-emerging waterborne pathogens like Aeromonas hydrophila possess virulence factors associated with human disease, and hence represent a serious public health concern. A total of 418 drinking water samples analyzed for occurrence of Aeromonas hydrophila and faecal coliforms (E.coli), detected  Aeromonas hydrophila  in 84.71% of Municipal Corporation (MC), 71.52% Submersible pump and 68.75%  from Hand pumps where as E.coli in 53.71% of Municipal Corporation (MC), 29.16% Submersible pump and none of samples from Hand pumps. There was no positive correlation between the simultaneous occurrence of Aeromonas hydrophila and E.coli (P < 0.005; R² = 0.84). All the isolates of Aeromonas hydrophila were positive for hemolytic activity, esculin hydrolysis and congo dye uptake. It also caused significant histopathological and ultrastructural alterations in liver, lungs, kidney and intestine in experimentally infected BALB/c mice. All the isolates (n=330) from water showed multiple drug resistance (MAR), MAR indices for Aeromonas hydrophila isolates is 0.5 (>0.2). MIC of sodium hypochlorite (4%) required by Aeromonas hydrophila was 6 ppm with CT factor of   15mg/l.min. These results highlight the pathogenic potential of Aeromonas species which poses a public health concern.