This study evaluates groundwater quality, and management tools in the vicinity of the Chowa-Gujjar dumpsite around Bara River, Peshawar, Pakistan. Therefore, groundwater samples (n = 30) were collected to investigate physicochemical and potential toxic elements (PTEs), to assess the distribution patterns and potential health risks. The findings of this study indicate that the dumpsite serves as the principal contributor for groundwater contaminants such as Mn, Co, Cu, Na, K, Fe, Zn, Ni, and Pb. Groundwater type shows mixed Ca-Mg-Cl2 and NaCl type representing reverse ion exchange and dissolution of evaporite minerals in the area. Hierarchical agglomerative cluster analysis (HACA) identified three clusters determining lowest pollution 33.3%, moderate pollution 43.3%, and severe pollution cluster accounting 13.4% contribution. Thus, cluster C3 showed potential vulnerability and caused health concerns in the residents. The principal component analysis (PCA) analysis indicated that groundwater contamination was attributed to geogenic, anthropogenic and mixed sources. But, PMF-model suggested five factors solutions to treat groundwater contamination I the study area. The fitting results of PMF-model was found better and accurate compared to PCA. Thus, PMF-model showed leaching of solid waste, industrial waste, geochemical processes, surface runoff, and agriculture practices to be major contamination sources. Groundwater quality indexing (GWQI) is used to assess groundwater quality and its suitability for domestic purposes. Here, GWQI reflected low pollution and medium risk for Cr, Pb, Ni, Cu, Zn, and Ca in the groundwater. Here, human health risks showed that children are more susceptible to contamination than adults in the area. The results of this study help minimize groundwater contamination by employing sustainable water management tools.