Experimental measurements conducted in the laboratory, involving hyperspectral analysis of water samples taken from public water resources, have motivated a re-evaluation of issues concerning the potential application of this type of analysis for water monitoring, treatment and evaluation prior to filtration. One issue concerns hyperspectral monitoring of contaminants with respect to types and relative concentrations. This implies a need to better understand the statistical profiles of water contaminants in terms of spatial-temporal distributions of electromagnetic absorption spectra ranging from the ultraviolet to infrared, which are associated with specific water resources. This issue also implies the need to establish correlations between hyperspectral signatures and types of contaminants to be found within specific water resources. Another issue concerns the use of absorption spectra to determine changes in chemical and physical characteristics of contaminants after application of water treatments, in order to determine levels of toxicity with respect to the environment. This paper presents a prototype spectral analysis showing various aspects relevant to water monitoring and discusses the use of basic theory for the interpretation of spectral features associated with water contaminants, as well as discussing inverse analysis of hyperspectral measurements.