Wetlands are amongst the most productive ecosystems of the Earth. Despite its potential in supporting people’s livelihood in Tanzania, Lake Victoria is being converted into other land uses. This paper evaluates the impacts of main socio-economic activities on Lake Victoria in Musoma Municipality. Primary data were gathered by administering the questionnaire to a sample of 220 households. Participatory rural appraisal techniques, participant observation and checklist were employed in data collection. The land use types and land use changes was examined through analysis of satellite imageries. This was attained by making use of ArcGIS10 and ERDAS Imagine 9.1. The socio-economic data were analysed using Statistical Package for Social Sciences. The land use/cover identified were Lake Victoria, CBD, infrastructures, Kitaji swamp, fishing areas, settlement, farms, industrial areas, tarmac road and recreational areas. Findings show that there is a strong relationship (r =91.3%; p=0.001) between the anthropogenic activities and land use type/ changes. These activities have caused the deterioration of wetland area along with its values at the average rate of 6.5 hayr -1 which was observed in 2001 to 2008. Lack of awareness on the role of wetlands was found to impede the participation of local people to Lake Victoria conservation. Thus, this study recommends that, natural resources management (including wetlands) should be integrated in the curriculum of all education levels to foster awareness raising campaign on role of wetland benefits to local people’s livelihoods.