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Industrial clusters of Gujarat, India, generate high quantity of effluents which are received by aquatic bodies such as estuary and coastal water. In the present study, microalgal assemblage, heavy metals, and physico-chemical variables were studied from different habitats. Principal component analysis revealed that biovolume of cyanobacterial and cryptophytic community positively correlated with the heavy metal concentration (Hg, As, Zn, Fe, Mo, Ni, and Co) and chromophoric dissolved organic matter (CDOM) under hypoxic environment. Green algae and diatoms dominated at comparatively lower nitrate concentration which was positively associated with Pb and Mn.