The water quality of Lake Shihwa had been rapidly deteriorating since 1994 due to wastewater input from the watersheds, limited water circulation and the lack of a wastewater treatment policy. In 2000, the government decided to open the tidal embankment and make a comprehensive management plan to improve the water quality, especially inflowing stream water around Shihwa and Banwol industrial complex. However, the water quality and microbial community have not as yet been fully evaluated. The purpose of this study is to investigate the influent water quality around the industrial area based on chemical and biological analysis, and collected surface water sample from the Siheung Stream, up-stream to down-stream through the industrial complex, Samples were collected in July 2009. The results show that the downstream site near the industrial complex had higher concentrations of heavy metals (Cu, Mn, Fe, Mg, and Zn) and organic matter than upstream sites. A combination of DGGE (Denaturing Gradient Gel Electrophoresis) gels, lists of K-WQI (Korean Water Quality Index), cluster analysis, MDS (Multi-Dimensional Scaling) and PCA (Principal Component Analysis) has demonstrated clear clustering between Siheung stream 3 and 4 and with a high similarity and detected metal reducing bacteria (Shewanella spp.) and biodegrading bacteria (Acinetobacter spp.). These results suggest that use of both chemical and microbiological marker would be useful to fully evaluate the water quality.