This study explores the impact of Customer Relationship Management (CRM) on customer satisfaction at the Arusha Urban Water Supply and Sanitation Authority (AUWSA). Employing a case study research design, the research targeted AUWSA customers and staff, using convenience and purposive sampling techniques to select a sample size of 100 individuals. Both primary and secondary data were utilized, with primary data gathered through questionnaires and interviews, and secondary data obtained from various documentary sources. Data analysis involved both quantitative and qualitative methods, with descriptive and inferential statistics applied to the quantitative data using SPSS. Qualitative data was analyzed through content analysis. The findings reveal that Information Technology (IT) significantly enhances timely information processing, facilitates effective customer communication, and promotes efficient service delivery, thereby reducing customer complaints and administrative errors. The study concludes that IT is crucial for improving customer satisfaction and recommends further research to explore CRM's impact on customer satisfaction in other service industries in Tanzania.