Low-quality water as an alternative source of water for food crops irrigation is gaining popularity in urban and peri-urban area in developing countries. The practice is associated with health risks if appropriate institutional measures are not undertaken. It is unclear on whether and how the practice is incorporated in the existing institutions in Tanzania. A cross-sectional study was undertaken in the country to assess an institutional framework in relation to the use of low-quality water for food crops irrigation. Data were collected through documentary review of formal institutions, in-depth interviews with the government officials (n = 15), farmers survey (n = 30) and focus group discussions (n = 2) with people using low-quality water from the waste stabilization ponds. Content and descriptive statistics analyses were employed. It was found that, the existing insti- tutions (policies, legislations and regulations) lack provisions that explicitly support or oppose the use low-quality water for food crops irrigation. The current effluent standards are tailored towards safe disposal for environmental management and public health protection. However, water scarcity and the need for alternative sources of water were acknowledged in the institutions and by the government officials interviewed. The existing informal uses of low-quality water reported were vegetables irrigation, brick-making and drinking water for livestock though the government officials interviewed were not in favour of leafy vegetables irrigation. The study recommends formulation of new institutions or review of the existing ones to enhance the productive use of the water resource while protecting the health of the public and the environment.