As part of the development of its new country strategy, WaterAid has been looking at how it fits in with the bigger picture of development policies and programmes in Tanzania. This bigger picture includes the overall strategies being planned and implemented to reduce poverty in the country and, more specifically, the policies and their practical implementation for water and sanitation. The first stage of this consultancy (July to September 2001) considered these issues. This report summarises some of the key findings about the bigger picture and proposes different ways that WaterAid could engage with it.