In a bid to improve water supply Tanzania changed its water policy in 2002. It is now almost two decades and water problems have remained a prominent issue. Community leadership is required to ensure increased access to safe water by enhancing effective community engagement in operation and management of water resources. The current study investigated the roles of community leadership in water supply through self‐help initiatives in the Morogoro region. A total of 365 household heads were randomly selected for a survey. Descriptive and inferential statistics were used for data analysis. Results show that there is a significant positive relationship ( r = 0.562 at p < .001) between community leadership and self‐help initiatives. Good leadership practices promote self‐help actions in water supply services. However, lack of accountability in the management of community water funds as well as leaders’ inability to lead by self‐help actions are examples of leadership ineffectiveness that currently hampers community self‐help initiatives. As such, addressing the current water problems in rural Tanzanian communities in a sustainable manner requires investments in programs that empower community leadership, and in some situations, alongside the development of water infrastructure.