This paper aims to understand how acquisition of agricultural land as well as destruction of irrigation system affects the ground water recharge in Kolkata New Town area. Kolkata New Town is a planned township project, developed to solve the ‘crowding, congestion and squalor’ problems of Kolkata Metropolis. 3075 hectare of land has been acquired for this purpose, of which 68.36% was agricultural land. The acquisition obviously led to forced livelihood change of the people who had been engaged to the acquired agricultural land. As well as the flora and fauna which survived within the agro-ecological system of this area are lost. Hence emergence of this new town, whatever may be the purpose of its building has brought forth many environmental damages. It is observed in this study that the area which was once well irrigated through RLIs (River Lifting Irrigation) has been acquired for a new city. The acquisition of agricultural land is now associated with i) a sharp fall of ground water level, ii) degradation of the quality of the ground water as well as iii) a high environmental cost due to halting of ground water replenishment through irrigation. Environmental services must be considered seriously before acquisition of rural land for urban purposes.