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The study assessed the sensitivity of hydrology and water resources to climate variation in Kikuletwa Catchment, Pangani Basin, northern Tanzania using 30 years of river level and climate data as well as questionnaire, focused group discussion (FGD) and participant observation. It concludes that there is a significant association between mean annual river level for Kikuletwa River and mean annual rainfall over the tree decades. The results are also taken to indicate an inverse relationship between river level and temperature in the catchment suggesting the effects of climate change on water resources. The eight villages covered by this study face a variety of water shortage and environmental challenges that are intertwined with the causes and consequences of a changing climate.