This paper examines the regulatory framework for access to legal shelter especially by low income households. The discussion is divided into the following parts. Immediately following this section we provide context of the discussion whereby the important question of urbanization in Tanzania in general and Dar es-Salaam in particular is presented. The second part focuses on urban governance providing the conceptual framework in which the process of urbanization revolves around. The third part discusses the realities and agonies of the residents of the Jangwani valley. In the fourth part an attempt is made to suggest some way forward that may help the various stakeholders to manage urban development and governance in a friendly-legal and participatory manner. The last part provides a concluding summary