The main purpose of this study is to assess the urban lake water quality along the coastal region of Miri City, Sarawak, East Malaysia. This study concentrates on the hydrochemical characteristics and the mechanisms controlling the suitability of the lakes for domestic, irrigation, and industrial purposes. A total of 15 lake water samples were collected and analysed for physical parameters, major ions, nutrients, BOD, COD, and heavy metals. The results show that Lakes 6, 7, and 8 commonly exceeded the National Drinking Water Quality Standards (NDWQS) limits, particularly in physical parameters and major ions. The cation dominance was Na+ > Mg2+ > K+ > Ca2+, while the anion dominance was Cl− > HCO3− > SO42−. It is inferred that lake 8 was affected by the seawater intrusion through the inlet flow, resulting in an excess concentration of ions present in that lake. The concentrations of heavy metals in these lakes were considerably low, indicating that most of them were from the geogenic source. Most of the lakes were NaCl water type and the main controlling mechanism were weathering and ionic exchange processes, with anthropogenic impacts. Based on the calculated Water Quality Index (WQI) according to the National Water Quality Standards (NWQS), all lakes were suitable for irrigation use (class IV), while most of these lakes fell under the “polluted” index. Apart from that, based on the National Lake Water Quality Standards (NLWQS), all lakes were classified under category D, indicating that the lakes must be kept in good condition. According to the irrigation quality indices, lakes 1, 2, 3, 4, and 5 were the most suitable for irrigation purposes. As for metal pollution indices (HPI and HEI), lakes 1, 2, 3, 4, 5, and 15 were considered safe with low pollution status. From the multivariate statistical analysis, it is deduced that both anthropogenic and geogenic impacts mostly influenced the quality of these lake waters. The outcome of this study will help the policymakers under the national water department in sustainable management of water resources in this region.