There has been significant expansion in cities around the world. This expansion often influences the local hydrology and adds pollutants to soil and water systems. The typical pollutants from industrialization include: contaminated sediments, oil, gasoline, heavy metals, pesticides and bacteria. Kumasi, the second capital of Ghana, has experienced tremendous expansion. The population increased from 346,000 in 1979 to 730,000 in 2000. The population explosion was accompanied by the development of new residential and industrial areas. One such industrial complex is the Suame “Magazine” where approximately 3,000 people work daily in small scale enterprises including machining, sheet metal fabrication, wood working, vehicle salvage and sale of automobile parts. This center which occupies several hectares of land is situated at the head of a watershed that drains an important river, Owabi. This river serves as a source of municipal drinking water for part of the city. This study was carried out to investigate the effects of activities carried out in the center on the heavy metal concentrations in the flood plains of the watershed. These were compared with those of a non-impacted area in a similar landscape in an adjacent flood plain. Results of the study showed that soils in the impacted flood plain had enhanced levels of Cr, Co, Cu, Zn, Pb and Hg compared with those from the non-impacted area. On the other hand, there was no apparent threat of As and Ni pollution. Considering the rate of expansion of the center and the waste disposal practices, pollution will be on the increase with serious consequences to environmental integrity. A concerted effort needs to be done to prevent future environmental disaster.