Bangladesh is overly dependent on groundwater and the demand in the near future is expected to increase, as the country is experiencing rapid development and industrial growth. This study assesses the prospect and sustainability of groundwater in Mirsharai Upazila, Chattogram, where a large industrial area, namely ‘Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN)’, is taking shape. The physical aquifer system was characterized and groundwater quality was mapped. There is one thick aquifer in the northernmost part of the upazila, which splits into three separate aquifers in the south. Water quality indexing suggests that the deep (>130 m) groundwater throughout upazila is good (n = 5) to excellent (n = 18), while the shallow groundwater is mostly poor to unsuitable for both drinking and irrigation purposes. Because of the close proximity to the sea and the presence of thick clays above the deep freshwater aquifer in the BSMSN area, heavy industrial abstraction poses a threat to the lateral intrusion of seawater and land subsidence. Even a small subsidence in the project area at only a couple of meters above sea level would jeopardize the entire project. This study recommends limiting the use of the deep fresh groundwater for the current population of the upazila.