Investigations on physicochemical parameters (temperature, pH, salinity, dissolved oxygen), including dissolved nutrients (PO4-P, NO3-N, SiO4-Si) and chlorophyll-a were carried out in the water off the mouth of the Narmada estuary from July 2008 to June 2009. The multivariate statistics and principal component analysis applied to the datasets, indicated two factors during the whole study period influencing variability in the water to the extent of 72%. Principal axis factoring and alpha factoring have been used to observe the mode of association of parameters and their interrelationships, for evaluating water quality. The results indicated the addition of phosphates and silicates to the coastal water by the Narmada estuary from natural sources during study period. The study indicated that the Narmada estuary adds sufficiently well-oxygenated, nutrient-rich water to the coastal region.