Dissertation (MSc Accounting and Finance)This study aimed at examining factors influencing management of donor-funded water projects in Dar es Salaam region. Specifically, the study focused on determining the influence of project monitoring and evaluation capacity of contractors and political influence on management of donor-funded water projects in Dare es Salaam region respectively. The study used a cross sectional research design and a sample of 49 respondents was involved. Data collection methods included interview, questionnaire and documentary review. Qualitative data were also collected and analyzed using content analysis while quantitative data were analyzed using descriptive statistics and Multiple Linear Regression Analysis Model. The findings of the study shows that, frequency of tracking the project, feedback and site meeting minutes, internal audit work and budget are important components in project monitoring and evaluation which are as well important factor for management of donor funded water projects. Moreover, the findings revealed that financial resources, technical equipment and technology, technical skills/knowledge and experience are important components in capacity of contractors that significantly influence management of donor funded water projects. Furthermore, the findings of the study indicated that, frequency of politician to approve project and participations of local community in project activities are important political components that influence management of donor funded water project. Thus this study concludes that project monitoring and evaluation, capacity of contractors and political influence are important factors to be considered for improved management of donor funded water project in Dar es Salaam region. Therefore, the study recommends that, the Ministry of Water in collaboration with DAWASA should ensure that contractors have the required capacity to deliver projects, due diligence should be exercised at procurement stage to verify information and documents presented by the prospective contractors regarding their financial capacity, proposed staffing in monitoring and evaluation, and prove of past execution of similar projects in order to weed out incompetent contractors for improved management of donor funded water projects in Dar-es-salaam.