Yes this is true and well observed. Arsenic contaminated water effect the plant metabolism. For example in Chattisgarh state, in some areas where paddy produced in large scale. In those areas, ground water is enriched in Arsenic. Unfortunately such Rice contaminated with arsenic. Sufficient literature available in this regard.
Arseniates and arsenites diminish the permeability of cell membranes and transport of water in plants. As has also an adverse effect on the mitotic index and provoke alterations in the chromosome structure. Symptoms of toxic effects of As in plants: inhibition of germination and growth. Reference: Smith et al: Arsenic uptake and toxicity in plants, Plant Soil 327: 1-21, 2010.
It is well observed ,Arsenic rich water contaminated , paddy crop in Chattis Garh state of India. Even such rice reported arsenic which is more than permissible limits. Already literature available.