The occurrence of lignite in Gujarat has opened new avenue for industrial development. Lignite is known to occur since long in the Laki shales of Eocene age in the Kutch district. The population of the Panandhro, Gujarat, India, is heavily dependent on groundwater. The present study summarizes the quantity estimations through water level fluctuation method of the groundwater resources found mainly in sedimentary rock aquifers. Scarcity of surface water resources has resulted into over stress on ground water resources in Kutch. The Bhuj sandstone (Mesozoic) in central Kutch is a major asset constituting good aquifer condition. With continuous withdrawal of ground water the water level has gone down and aquifer is now in unconfined state. The present study shows in brief the findings of the present status of groundwater level in the region during Pre¬monsoon and Post¬monsoon. This comparative study illustrates the exact scenario of the groundwater level fluctuations in the region. Also, this has necessitated the need to develop an adequate groundwater resource management plan of the area with specific reference to identification of the processes responsible for it and their proper evaluation.