Due to its geographical location, Deltaic Bangladesh is naturally enriched with more than 700 rivers. Like the rivers, their distributaries, and tributaries, large and small canals also distinguish the land whether it’s naturally originated or excavated by the dwellers. Dinajpur City has such canal from city’s origin named “Ghagra,” which flows through the heart of the city. “Ghagra” is a 29 km long canal in which 15 km contributes to Dinajpur Urban area. Though it was excavated to maintain the water disposal network of the city, in later periods, it was also used for bathing, fishing, and boating. The absence of a proper master plan of the city considering the waterfront as a design element, rapid urbanization, and unawareness of people is causing continuous decay of the canals and the whole Dinajpur city in the near future. Unplanned development, canal encroachment, and waste dumping have blocked the flow of the canal and disconnected it from the river, resulting in waterlogging and sometimes flood in Dinajpur city. The research will focus on what are the impacts of neglecting the Ghagra canal in urban development on Dinajpur city sustainability. At first, the research will analyze Ghagra Canal’s morphological transformation and impact, then it will investigate city sustainability assessment criteria, and finally, the research will assess its impacts on the city’s sustainability. The research will be qualitative research guided by theoretical, mapping, and photographic analysis. This paper will show how neglecting the water body during urban development can affect a city’s sustainability and as well as similar phenomena.