In several low‐ and middle‐income countries, such as India, the rapid construction of toilets to combat open defecation has not been matched with adequate wastewater treatment, resulting in extreme fecal contamination of the receiving environments. The sewage‐receiving surface water bodies, typically close to the residences, are a potential hotspot for disease transmission and antibiotic resistance. Water, soil, and sediment samples from seven wastewater‐receiving ponds (WRPs) were analyzed for water quality, chlorophyll‐a, fecal contamination (yccT for Escherichia coli), 16S rRNA gene copies, and anthropogenic antibiotic resistance gene markers—sul1 and intI1. These WRPs were contrasted with two ponds that did not directly receive sewage. The water quality in the WRPs was comparable to raw sewage (BOD: 210–380 mg/L; COD: 350–630 mg/L; total‐N: 100–190 mg/L; and total‐P: 6–21 mg/L), and the relative levels of the DNA marker of E. coli were very high (yccT: 0.1% to ∼100% of total bacterial count) indicating extreme fecal contamination. The relative levels of sul1 and intI1 were 1–3 orders of magnitude higher in WRPs (sul1: 0.32%–10% of total bacterial count; and intI1: 0.2%–5% of total bacterial count) compared to the ponds that did not receive sewage directly. The relative levels of sul1 correlated with the DNA marker for the fecal indicator, E. coli (p‐value < 0.05; r = 0.50; Spearman's rank correlation), and poor water quality.