Change in land use and land cover is an inevitable phenomenon in urban areas. The urban dynamic shows impacts on its fringes. Edge urban transformation is inextricably linked to the shrinkage of surface water bodies. The changes in surface water bodies as well as the vulnerability status in the urban fringes of the Kolkata Metropolitan Development Authority (KMDA), India region, have been the focus of this chapter. Basic approaches have been marked in this paper. In the first part, the author has prepared a comprehensive and reliable methodology to delineate the urban fringe area using digital image processing techniques based on the “fringe effect” theory in landscape ecology. The existing land cover information entropy model incorporating scale theory, the Shannon Diversity Index (SHDI), is significantly used to generalize the actual mixed pixels (i.e. fringe) in satellite image. The election of the optimal size of grid for the calculation of SHDI is selected using the following two algorithms: value stability and spatial heterogeneity preservation. Ultimately, the selection of an optimal threshold value to delineate the fringe area is marked by applying Otsu’s thresholding method. The second part dealt with the changing surface water area during the last 30 years (1989–2019) in the urban fringe areas of KMDA. Water quality parameters such as turbidity, total dissolved solid, electronic conductivity, temperature, and pH have been examined through satellite image band ratio, and accuracy assessment is done by collecting sample water from different surface water bodies of the fringe area. The water collection follows the following steps like spot analysis and sample preservation to process it for further analytical computation. The enumerated analysis of water quality of the fringe portion of KMDA is found to be a great concern, and it is felt that there should be a separate administrative body to plan uniquely only for fringe areas to dwindle the effects of environmental disparities.