Falaj Al-Azeezi in Saiq village was surveyed for its water quality, soil quality and socio-economic impacts after suffering from ten years of diesel contamination of its most important water resource. The water quality of the falaj was assessed physically and chemically at five stations from upstream to downstream. Wadi Bani Habib a control stream was also surveyed for three months of the sampling period to enable comparisons. The chemical quality of the soil was surveyed in three zones of the contaminated Falaj Al-Azeezi area and in one zone of the control site once during the sampling period. Socio-economic impacts were assessed by interviews with the people of Saiq village. The total hydrocarbons although present in the mother-well and in a wadi pool upstream, were absent or below detectable levels at falaj stations. This indicated the presence of contamination but at low levels. All physical and chemical parameters of water were within permissible limits of drinking and treated wastewater standards except for pH, nitrite and four of the heavy metals. The pH, and Mn exceeded its permissible limit only in one station, while nitrite and the three heavy metals (As, Se, Pb) were at unacceptable levels in almost all of the stations. Unfortunately, these results force the conclusion that the water quality of Falaj Al-Azeezi is still poor for the purposes of drinking and irrigation. Soil quality of the contaminated area showed the effects of diesel contamination. The common elements of Omani diesel such as sodium, calcium and potassium, and trace metals such as vanadium were all present in high concentrations in the contaminated site. The assessment of socio-economic impacts showed that majority of people in Saig village were aware and concerned about the diesel contamination problem in the area. Stake-holder participation in solving this important problem was poor. The interaction between decision-makers and the village seem to have been inadequate and confusing. This was evidenced by the construction of the new falaj, issues relating to the operation of the oil-separator and the present state of knowledge on the impacts on soil, fruit crops and social life.