Urban areas in almost all cities of Tanzania are characterized with dire lack of physical infrastructure, mainly access roads, storm water drainage networks, unnamed streets, community meeting places and to a lesser extent running water. Lack of financial resources by the Government and laxity in enforcing land use regulations account for this state of affairs not only in the urban sector but also in all other sectors of the economy. Unlike developed countries, Tanzania has a much larger informal sector that accounts for up to 60% of the national income. Much of the human as well as social capital resides in this sector. Over the last 10 years, attempt was made by a government agency, the Tanzania Social Action Fund (TASAF) to tap resources in the informal sector. A number of projects were hatched and with minimal financing from TASAF, projects' objectives were achieved through these alliances between a government department and communities in the informal sector. Alliance between TASAF and residents of Mbezi, a new planned district of Dar es Salaam, culminated in realizing road infrastructure. The main argument of the paper is that whereas social capital would presume a situation of trust that develops out of a commonality of factors such as sharing traditions, it is possible to inculcate in people irrespective of their income levels, trusts, reciprocity and eventually networking that is crucial in realising common solutions to their problems. The conclusion from the paper alludes to the fact that individual solutions to infrastructure problem such as resorting to four-wheel drive vehicles are neither sustainable nor affordable in the long run. Community participatory approaches in tackling provision and maintenance of infrastructure for both low and high-income population areas are possible. Increased involvement of the people in working for their own development is the only surest way of solving both economic and social problems in the developing world.