This research aims to identify the concentration of formaldehyde in groundwater by using UV-Vis Spectrometer and to assess the physical-chemical parameters of water quality in groundwater. The samples were collected from a cemetery of Kampung Darat Demit where the formalin-based specimen was buried. The unknown concentration of the formaldehyde was determined by using chromotropic acid method for the analysis of formaldehyde. A calibration curve was prepared with six different concentrations to determine the unknown concentration of formaldehyde in the samples. Seven parameters of water quality were analyzed using respective methods and the relationship with the presence of formaldehyde in water were discussed. By using the National Water Quality Standard (NWQS) of Malaysia 2008 the class of water for all samples were determined. A statistical study of one-way analysis of variance (ANOVA) was conducted using SPSS 20th version software. The results showed the different concentration of formaldehyde found in all four samples for four consecutive weeks. The classes of water samples for each physical-chemical parameter vary and in range between Class II and III. The water quality parameters' results were measured and transferred into SPSS to determine the F test values. From the results, the presence of formaldehyde in water may have significant effect on the water quality parameters physically, biological and chemically.