Aquatic fungi commonly infest various aqueous environments and play potentially crucial roles in nutrient and carbon cycling. Aquatic fungi also interact with other organisms to influence food web dynamics. In recent decades, numerous studies have been conducted to address the problem of microorganism contamination of water. The major concern has been potential effects on human health from exposure to certain bacteria, viruses, and protozoa that inhabit water and the microbial metabolites,pigments, and odors which are produced in the water, and their effects on human health and animals. Fungi are potentially important contaminants because they produce certain toxic metabolites that can cause severe health hazards to humans and animals. Despite the potential hazard posed by fungi, relatively few studies on them as contaminants have been reported for some countries.A wide variety of fungi species have been isolated from drinking water, and some of them are known to be strongly allergenic and to cause skin irritation, or immunosuppression in immunocompromised individuals (e.g., AIDS, cancer, or organ transplant patients). Mycotoxins are naturally produced as secondary metabolites by some fungi species, and exposure of humans or animals to them can cause health problems. Such exposure is likely to occur from dietary intake of either food,water or beverages made with water. However, mycotoxins, as residues in water,may be aerosolized when showering or when being sprayed for various purposes and then be subject to inhalation. Mycotoxins, or at least some of them, are regarded to be carcinogenic. There is also some concern that toxic mycotoxins or other secondary metabolites of fungi could be used by terrorists as a biochemical weapon by adding amounts of them to drinking water or non drinking water. Therefore, actions to prevent mycotoxin contaminated water from affecting either humans or animals are important and are needed. Water treatment plants may serve to partially accomplish this, by first filtering the water and finally by adding disinfection treatments adequate to remove or mitigate fungi or their toxic metabolites.