The reservoir at the Tilaiya Dam constructed on the Barakar river is one of the most important freshwater resources in the Koderma District in the state of Jharkhand in India. Its water is used primarily in agriculture, pisiculture, industry, regional thermal power plant, and various domestic errands viz. cooking, washing, and drinking. The reservoir also supports a wide variety of flora, fauna, and birds. This work reports the variation in seasonal water quality (pH, turbidity, DO, TDS, electrical conductivity, total hardness, iron, chloride, calcium, magnesium, alkalinity, phosphate, sulfate, fluoride, total bacterial count, and fecal coliform count) trends over a 4-year long period (July 2013-July 2017). Conspicuous dilution effect on water quality was observed during and just after the monsoon season while concentrations of TDS, electrical conductivity, iron, chloride, calcium, magnesium, phosphate, sulfate, and fluoride increased during summer. Principal Component Analysis/Factor Analysis (PCA/FA) identified three factors in the data structure, explaining about 71.5-77.9% of total variance in dataset. Run-off from catchment areas was one of the major factors that influenced water quality during the monsoon seasons. The t test indicated that except between summer and post-monsoon in 2013 and 2014, seasonal DO values had statistically significant difference. Also, turbidity in summer, postmonsoon and winter seasons had statistically significant differences while total hardness (TH) was statistically different in summer over winter but not in summer over post-monsoon. On the other hand, TDS did not have statistically significant seasonal shifts. Water quality index (WQI), pollution index (PI), comprehensive pollution index (CPI), computed over the study years revealed that water quality of the reservoir could be categorized as 'Good' but is gradually deteriorating. This calls for greater attention and proper management of the Tilaiya reservoir in the interest of environmental and regional sustainability of Koderma.