Coal mine pollution has become one of the most serious environmental problems in China and elsewhere. Water, in the form of groundwater and streams, as well as stream sediment samples, were collected from the coal mine area in Dazhu, Southwestern China. Different analyses, including the hydro-geochemical, multivariate analyses and X-ray analyses, were conducted to examine the coal mine pollution effect. The study results show that the groundwater and stream samples are slightly acidic to alkaline with pH values of 6.36 to 7.17 and 6.51 to 7.39, respectively. With the dissolution of carbonate and sulfate, a large amount of Ca2+, Mg2+, and SO42- is found in the groundwater and stream samples, which is higher than the environmental background value. Typically, the water samples are dominated by Ca2++Mg2+-HCO3- and Ca2++Mg2+-Cl-. According to Chinese standard and the World Health Organization’s guidelines, the water in the coal mine area is of good quality in terms of its physical and chemical properties, except for the concentrations of Fe and Mn (1925.14 and 12872.882 μg/L, respectively). Principal component analysis reveal two groups that explained the variance in the data consisting of SO42−, Ca2+, Mg2+, and low pH as well as HCO3−, Na+, and Cl−, which can reflect the acid mine drainage effects as well as different human activities or the evaporation found in low mountains and hills, respectively. Hence, the concentrations of metals and metalloids in the stream sediments are affected by the coal mine drainage, which are generally enriched in Cr, Mn, Zn, Sr, Co, Ni, Cu, Al, Ca, Fe, and Mg. Mn and Fe average concentrations are higher in the downstream Kongjiagou drain stream sediment samples were 2035.03 ppm and 6%, respectively, relative to the Mn and Fe average concentrations in Xiaojiagou of 453.04 ppm and 2.96%, respectively. Both Mn and Fe concentrations are higher than the background values. Ultimately, mine closures can help with the process of ecological and environmental recovery.