This paper is about the how population and income are related in Tanzania. The paper examines how population distribution has relation to income in Tanzania. The author used table research approach to examine, discuss and analyze data accordingly. Population distribution is largely determined by income distribution.The income generating opportunities, influences people to prefer living in those areas. This justifies the overpopulation of industrial cities like Dae Es Salama, Mwanza and Arusha and under population of Lindi and Mtwara. Conclusively, any investment decision apart from other factors should take into account the population distribution, because in developing country population in an evenly distributed across all African countries and mainly caused by investment and resources availability.

Keywords : Income Distribution, Resources, Population Distribution and Investment.