In the environment like seawater, mercury can be oxidized by some bacteria, such as Thiobacillus, to produce Hg ions which are soluble in water and toxic to marine organisms, such as bacteria, algae, and so on. On the other hand, the occurrence of Pseudomonas, as E. coli, is believed can reduce the number of Hg ions in the environment. An experiment was conducted to count total coliform and total E. coli, to isolate, to identify E. coli isolated from Manado Bay seawater, and to determine the ability of E. coli isolates to do reduction and or oxidation of mercury ions. Seawater samples were collected from the reclamation area, especially close to Tondano River, Sario River and Bahu River around Manado Bay. As a control, some water samples were taken from Bunaken Island waters at Liang and Muka Kampung area. An amount of 500 ml water samples was taken from the sampling site and placed into container, then brought to the laboratory for further analysis, such as total coliform, total E. coli. In addition, some biochemical tests were also carried out in order to identify the isolate. The results showed that nearly all isolates of E. coli (83.3%) exhibited their ability in mercury ions oxidation, while the isolates that can reduce ion mercury were 13.3% only. The highest Hg-ions reduction was influenced by the characteristic of isolates, and mercury ions oxidation was also dependent upon the strain type.