Repeated outbreaks of a suspected viral fever in Chirimiri colliery area, Madhya Pradesh were reported since 1990. The area consists of an agglomeration of sprawling settlements at varying altitudes of 816 to 890 m and it has partial sylvan cover. During a 1992 outbreak 25 patients' sera were tested, of which 13 showed seropositivity to dengue (DEN) by MAC-ELISA test; DEN-2 was isolated from Aedes aegypti collected from two of the eight settlements of the area. The principal vector, Ae. aegypti, was prevalent in all the settlements studied; Breteau indices (BI) varied between 2.5 and 125.0; adult house indices (AHI) between 0 and 60.0%; Ae. albopictus and Ae. vittatus occurred in considerable numbers; Ae. aegypti bred in more containers with nonpotable water than those with potable water; the breeding of this species was noted in a maximum number of cement tanks while mud pots were predominant among the available containers. Paired comparisons between relative prevalence indices showed significant correlation and regression coefficients. Significant association of Ae. aegypti breeding with the households having tap water supply was noted, the relative risk declining with the people's use of well water either exclusively or in combination with other sources of water supply. It was also collected in the nonresidential areas. The role of ecological factors in the maintenance and spread of Ae. aegypti and dengue in these settlements is discussed.