Groundwater is one of the precious water sources for domestic, irrigation, and industrial demands in arid and semiarid regions of the world. The same is true in Ethiopia context. In this study, seven groundwater samples were collected and analyzed for various chemical constituents (pH, TDS, Na+, K+, Ca2+, Mg2+, SO42−, Cl−, HCO3−, and NO3−) to assess the hydrogeochemical characteristics and water types of the groundwater wells. Among the seven sampled groundwater wells, five wells are found and used for domestic water supply in Arba Minch University (AMU) main campus. The remaining two are used for industrial and irrigation demands located at the compound of Textile Factory and Haile Resort, respectively. Results showed that the main campus groundwater wells are saline and harder than the two wells from Textile Factory and Haile Resort. Moreover, elevated concentration of nitrate and potassium (greater than the maximum permissible level allowed in Ethiopia) were obtained in the groundwater sources used mainly in the AMU main campus wells. These elevated concentrations of potassium and nitrate beyond the enriched salt contents in the AMU main campus wells could pose kidney, cardiovascular, and other related health problems. This study, therefore, recommends the AMU to find other groundwater sources for drinking purpose other than the studied water-well field.