Beyond doubt water is vital in promoting the population's well-being and quality of the urban environment. However, in the cities of the developing countries, the supply of water does not match water demand. This paper briefly present part of findings of a study carried out in Dodoma Municipality on Promoting Low Income Housing for Livelihoods of Low Income Households. The aim of the paper is to create awareness of the public on the impact of water reforms on the urban environment in Dodoma Municipality. Concerning methodology, the intensive fieldwork was carried out in four study areas namely Chidachi, Chilewa, Chadulu and Maweni because the neighbourhoods have used piped water for a decade thus have adequate and accessible data and information on the impact of water reforms on the urban environment in Dodoma Municipality. Specifically, the study investigated the impact of water reforms on the urban environment in Dodoma Municipality. Data collection methods were documentary review, physical observation, interviews and focus group discussions. The data was analysed by using computer software namely IBM SPSS Statistics. The study found that one of the water reforms was commercialization of water service delivery. The water authorities got autonomy on water supply. To improve water services, new water tariffs were introduced as a result there was overly high burden water costs which in turn limited availability of water for irrigating flower gardens. For instance, out of 34 institutions involved in the study four have developed and maintained flower gardens. In addition, 35 households out of 240 respondents involved in the study had flower gardens. The paper concludes that water reforms have brought about negative impacts on the urban environment. Socially, the water reforms have largely benefited members of the high income households who occupy a relatively small area of the urban population. In Dodoma, the high income households also own plots in unplanned settlements. However, due to dispersed nature of the high income plots their flower gardens have improved urban vista at the household level but failed to bring out beauty vista of the entire urban environment. Basing on the findings, the paper recommends that there is a need to review water tariffs to encourage urban environmental groups to efficiently promote flower gardens. Promoting flower gardens will first beautify the urban environment. Secondly, promote flower gardens will increase employment opportunities. More people will be employed by the environmental groups in growing pot flowers, in landscaping and selling pot flowers.