This paper presented key findings from the study which aimed to assess the impacts of climate variability and local adaptation strategies in selected villages of Mbeya and Makete Districts located in the most upper Great Ruaha River catchment in Southern Tanzania. Together, the study districts cover a wide range of climate change related hazards. Both qualitative and quantitative methods are used for data collection and analysis. The study shows that, there is significant change in pattern and amount of rainfall contributing to water stress, making people more vulnerable. Local communities are adapting to spatial and temporal climate variability, with varying degrees of success. Traditional smallholder irrigated systems used as adaptation strategies for crop production are characterized by low water use efficiency and high water losses. This implies that, if irrigation is managed properly, it can lead to sustainable increases in small farmer’s productivity and income, thus alleviating rural poverty and enhancing environmental management objectives.