This study estimated physical and economic accounts of water in the Kikuletwa catchment of Pangani River Basin. Specifically the study focused on physical water supply in the catchment, water use including main users and their respective amounts and estimates of water asset accounts. The study adopted the system of Environmental and Economic Accounting of Water (SEEAW). Secondary data on rainfall, water flow, spring water, water abstraction, groundwater recharge and evapotranspiration were collected at Pangani Basin Water Office while, secondary data on livestock and crop water use in the catchment were sourced from the National Sample Census of Agriculture of 2008. Water flow data were recorded in water depth measured in cubic centimetres then computed using the established discharge equations in gauged stations to obtain water flow quantities in m 3 /month. Microsoft Excel 2007 was used to analyse data. Key findings show that, the catchment received 1 024 million m 3 of water as mean monthly inflow of which 39% came from rainfall and the rest 61% contributed by groundwater spring. The catchment water supply is scarce, as most of its water is highly committed. Small scale irrigation is the main user of water in the catchment taking 49% of water set for economy. The study recommended that; the PBWA should work with irrigators and Ministry of agriculture food security and cooperatives to improve water use efficiency in the catchment, harvest rain water to offset pressure on groundwater and grow more crops with higher yield per unit water used.African Economic Research Consortium