Discharges from tanneries are the major causes of environmental contamination in Ethiopia. A field experiment was carried out during 2012/2013 to assess the contamination of surface water (effluent) and soil by heavy metals. Surface water and soil samples collected from tannery industry located near Ejersa area of East shoa, Ethiopia from six different sample areas in triplicates from the tannery outlet up to Koka lake by dividing in S0 (control, out of effluent point), S1 (near the out let, upstream), S2 (0.75 km), S3 (1.50 km), S4 (2.25 km) and S5 (3.0km at Koka lake, downstream). The control soil samples were collected from the farm land at the vicinity placed out of the effluent points. The water samples were collected in plastic containers from five different points in 0.75 km distances. Soil samples also collected from the proximate of the effluent samples collected at the depth of 0-10 cm and 10-20 cm. The physico-chemical analysis for metallic parameters was determined using Graphite furnace atomic absorption spectrometer and atomic absorption spectrophotometer. The determined parameters were like: pH, Electrical conductivity (EC), Biological Chemical Demand (BOD), Chemical Oxygen Demand (COD) and Total Dissolve Solids (TDS) and for heavy metals namely: Cd, Cr, Cu, Fe, Pb, and Zn. The concentrations of analyzed parameters shows decreasing from S1–S5 except TDS, Cu, Fe and Zn, that was recorded less than the maximum allowable limits. Fe and Zn recorded more than the maximum allowable limit in all sampling sites. The concentrations of Cr in sample S1, S2 and S3 in both depths recorded more than the maximum allowable limit. In the analysis result the concentration of Fe in all samples also recorded higher than the maximum allowable limit (50,000 mg kg-1). The concentration of Cd, Cu, Pb and Zn in all samples recorded under the maximum the guideline for total soil. Generally the concentrations all metals observed decreasing from sample S1(near the effluent out let,) S5 (near the Koka lake) in both depths of 0-10 cm and 10-20 cm. The control soil sample in both depths were recorded less than the maximum allowable limit. The pH of soil samples in both depths were relatively constant throughout the sampling sites.