Land tenure security for the poor residents of informal settlements is a critical factor in facilitating access to housing and livelihood opportunities. In Dar es Salaam, many households live in informal settlements, where their land rights are not recognized by the state. Tenure regularization offers one possible solution to the problem. However, regularization presents unique challenges. This study analyses efforts by both state and community agents in undertaking tenure regularization within the framework of recent land law reforms in Tanzania. The study reveals that the objectives pursued under the state-sponsored projects through the award of ?Residential Licenses? fail to recognize the perceptions of tenure security prevailing among residents, and may instead beset household efforts at settlement improvement owing to the limited benefits bestowed by the licenses awarded under the 1999 Land Act. On the other hand, community-led regularization schemes present residents with the promise of higher levels of tenure security and more benefits compared to the licenses, but suffer from unclear policy guidelines and direction from the state.