In this study, the impact of geothermal water on ground and surface waters has been investigated in Akarcay Basin, Turkey. The release of thermal return water from district heating in the city of Afyon and from thermal baths has a considerable environmental impact on the main stream. Historical analyses of stream water quality data show that the present pollution is associated primarily with thermal return water of district heating system. Currently, about 6% of stream water comprises of thermal water. The pollution seems to degrade the water quality in Lake Eber. Streambed sediments were found to be in equilibrium with polluted water and may lead to additional pollution in lake water. Thermal groundwater intrusion to fresh water production wells was detected mainly at sites close to geothermal fields. Solutions to remove thermal water from surface environment are suggested.