Concerns about the impact of quarrying are hardly new. Complaints about quarrying activities were voiced before 1890s. The issues of concern have not changed over time Â visual intrusion, damage to landscapes, traffic, smoke, noise, dust, pollution and loss of land. Quarrying is very much part of the local heritage, but most of the peoples well aware of the negative impact of quarrying. The aim of the present study is to determine sensitive and specific areas that urgently need planning for sustainable resource and environmentalmanagement. In this context, a combination of Remote Sensing (RS) and Geographic Information System (GIS) tecchnical tools were employed. Based on the GIS studies, the Shahabad Basin was selected as the model sensitive region and was studied by using latest Landsat satellite imagery. These results indicate that amongst all the industrial areas lying onKAGINARIVER basin, the Shahabad area is largest&most populated in this region. Shahabad area was further examined to determine the expansion of urban areas over a time period of 16 years using Landsat images. Finally, interpretations were done on the prevailing environmental situation. Our study not only delineated the importance of applying environmental policies but also demonstrate the effective pollution management.