An electrochemical nano-biochip for water toxicity detection is presented. We describe chip design, fabrication, and performance. Bacteria, which have been genetically engineered to respond to environmental stress, act as a sensor element and trigger a sequence of processes, which leads to generation of electrical current. This novel, portable and miniature device provides rapid and sensitive real-time electrochemical detection of acute toxicity in water. A clear signal is produced within less than 10 min of exposure to various concentrations of toxicants, or to stress conditions, with a direct correlation between the toxicant concentration and the induced current.