Water is a precious commodity, essential for the survival of life. It is a unique product with no substitutes and continues to meet the basic needs of humanity. Its contribution to human survival cannot be compared to that of any other sector because it is said that “no water, no life”. Due to their importance, a significant number of water supply services have been developed in many developing countries, both in urban and rural areas, mainly covering water supply systems and sanitation infrastructure. Most of these water supply systems were either financed by international agencies, central government agencies, state or by local governments during its planning and construction. Despite substantial support from these agencies, the fact remains that many water projects have resulted in a limited level of service delivery. Urban residents have been reported in several cities complaining to water utilities that they do not have convenient access to efficient water supply and proper sanitation systems. Providing continuous, adequate and safe water services requires generous, abundant and reliable water sources. , adequate treatment plants, adequate distribution network, properly functioning pumps, adequate storage capacity, sound management and capable financial resources for its operation. The tendency of urban water managers, faced with increasing water demand challenges, has been to plan for expansion of supply to meet required levels. Water supply planning involves a wide range of water-related components such as types of water sources, treatment plants and other water infrastructure. Additionally, it involves customer behavior and employee responsiveness towards the water sector. In order to satisfy and achieve the n...... middle of paper ...... rural areas. During the period 2002 to 2012, the government spent more than 90% of its revenues on water-related structures, including around 81% on larger water resources (large storage) and around 12% on basic supply of drinking water (small sources) and basic sanitation (UN-Water Summary Note 2002-2012). Tanzania is facing problems of urbanization and population increase, these factors have created tensions on the provision of public services, i.e. health, clean water, education and other basic services for society. Unplanned informal settlements, dilapidated infrastructure, poor water quality, increased water demand, high water tariffs, poor access to water, climate change and poor sources of water make the water supply system very complex. It is estimated that only 79% of the population living in planned areas enjoys a reliable water supply. Otherwise, only about