The spatial differentiation of land use changes of Tuticorin is studied using high resolution LISS III satellite imagery and Maximum Likelihood algorithms. The classification accuracy of 95.2% was obtained. In this study, the land use of Tuticorin is classified as settlement, salt pan, agricultural land, wasteland, water bodies and shrubs. The settlement area is increased to 4.6 km² during the year 2001 and 2006. The settlement area change is mainly driven by growth of industries and migration of people from peripheral villages. Shrub is increased to 3.63 km² in the six year period. Water logging due to growth of shrubs in Tuticorin leads to several environmental and health hazard. This study warrants proper urban planning for Tuticorin for sustainable use of resource and environment.