Ecosystem services are increasingly promoted as a means for documenting the values humans place on ecosystems and evaluating benefits derived from natural resources. However, one of the main reasons that scientists and decision-makers are worried about the current trend of ecosystem degradation is that ecosystems provide valuable services and there are strong indications that these services have been degraded considerably. This draft paper on economic assessment of goods and services delivered by Pangani Basin is part of a PhD study that focuses on Potential for Payment for Water Services in Pangani Basin Tanzania. Field surveys, structured questionnaires, interviews with key informants and literature reviews were the main tools for data collection. Statistical Package for Social Sciences (SPSS) was the main software for data analysis. Microsoft excel was used to produce figures and tables. Although the analysis is still going on, preliminary findings indicated that goods and services include water for power production, domestic uses, irrigation; aquaculture and small scale fishing nutrient regulation; commercial crops irrigation; enjoyment of scenic beauty and eco-tourism; just to name a few a just some of the ecosystem goods and services delivered by Pangani Basin. Commercial flower growers (mainly companies from Holland) are the water user stakeholders in Pangani Basin. These include: Dekker Tanzania-Arusha, Tanzania Flowers, Dekker Moshi, Kilflora Fower Cuttings, etc. The average value of water in Basin and Pangani Basin was Tanzania shilling 36, 769 and 52, 960 millions respectively where as the upper bound was 45, 962 and 66, 200 respectively. Also the average prices of water in villages were Tsh1.50/lt in the highlands, 1.25/lt in the Kirua Swamps area and Tsh1.20/lt at the coast. These prices, equivalent to Tsh 1500, Tsh 1250 and Tsh 1200 per m3 respectively. It can be concluded that, a thoroughly economic assessment of water values should be undertaken in Pangani Basin. The way forward is to finish data analysis for the data collected so far and collect more information for the study.