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Water is one of fundamental basic needs for human being. During colonialism era, water sector in Tanzania was supplied to fulfill the need of settlers for housing use and farming owned by bourgeoisie.This study intended to analyze the effects of customer satisfaction on water utility business performance. The study was guided by the four specific objectives namely, analyses the influence of customer satisfaction on return on asset of MBIUWASA, to evaluate the relationship between customer satisfaction and return on equity of MBIUWASA. To assess the influence of customer satisfaction on return on investment of MBIUWASA. The study employed a method mixed design in evaluating these factors. Fifty (50) participants were conveniently sampled and head of departments were interviewed within a period of 4 weeks. After data analysis and description, the results reveal that, Water services in Mbinga are very low compared to the needs of customers. There is not much investment in water projects aimed at solving the problem despite the fact that the daily population is increasing and that's how water services are needed as well. Inadequate financing of the water sector: Adequate financing is needed for investments in water resources management and water supply. Yet so far financial resources remain inadequate. On the basis of the above findings, it concluded and recommended that, sustainability of water supply is mandatory, one of basic needs including water services. The authorities should make sure that all water projects are well supervised and maintained for social-economic development from an economic perspective. Water service and sanitation policy should much focus provision of water for urban and rural in equal chance, people of rural areas need water services the same like those in town(urban), water is still problem to many areas in Tanzania so the government should increase water and sanitation budget by considering rapid population to fasten social-economic development. Availability of enough water will reduce poverty hence the government will fulfill the need of MDG by providing water and sanitation services (sustainability water and sanitation) for decreasing number of poverty and hence will improve living standard of people. To the society, in the context of sustainable development, where water is often a key driver – and a potential limiting factor – for economic growth, human well-being and environmental health, protecting water sources and the community is advised to take care of water sources and not to undermine water infrastructure, as it is too costly to get it destroyed, it is a huge concern for the nation and the sustainable development of society.

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