This study analyzed the socio-economic impacts of water projects on community livelihood in peri-urban Tanzania. It employed a cross-sectional research design, and a survey questionnaire was distributed to 353 households that were randomly selected by probability sampling procedures. Data were analysed using the logistic regression model. This study was guided by theory of Peri-Urban Turbulence (PUT) which is founded on the idea of changes in the balance and magnitude of natural and caused infrastructure and local and distant established arrangements during the transition, primarily in fast-growing urban areas of the Global South. The findings suggests the respondents’ year of schooling positively affect household access to water. Having one additional year of schooling may increase the chance to access to water facilities. Furthermore, the average household head’s monthly income was a significant explanatory variable at a one percent level of significance. Besides, non-farm activities were significantly associated to access to water. Nevertheless, the study identified the four major economic activities that the community engaged in as a result of water accessibility; male and female hair saloon salons, petty trading in village open auctions, vegetable gardening, and motorbike riding. Among of the four major economic activities performed, petty trading in the village open auction business is the most practiced. One can conclude that, the existence of water projects promotes socio- and economic development.