Anderson was honoured alongside Livingston and District Dolphins which scooped Club of the Year prize at the recent awards in Glasgow.
The event celebrated the success of the entire Scottish aquatics community nationally and internationally.
Dave King, executive councillor for culture and leisure, said: “Congratulations to both Jim Anderson and everyone at Livingston and District Dolphins on their success at the Scottish Swimming awards.
“Jim Anderson fully deserves his place in the Hall of Fame for his incredible achievements in the pool.
“On behalf of West Lothian Council, I would like to extend our congratulations to Jim and his family on this wonderful legacy of a truly phenomenal swimming career.
“Livingston and District Dolphins are a benchmark for other clubs in West Lothian and across Scotland looking to create opportunities for all levels of swimming abilities.”
Anderson was inducted hall of fame for his incredible career in swimming spanning 20 years including six Paralympic Games, five IPC World Championships and six IPC European Championships, with a medal haul of 15 golds, 14 silvers and six bronzes.
His performance at the Athens 2004 Paralympic Games earned him the BBC Scotland Sports Personality of the Year award in addition to his four gold medals.
For his dedication to the sport, Anderson was awarded an MBE in the 2005 New Years Honours list and subsequently an OBE in the 2009 Birthday Honours list.
Having competed at every Paralympic Games since Barcelona 1992 and following his sixth Games appearance in London 2012, he announced his retirement from international competition.
Born in St Andrews, he first tried the sport when he went swimming with his family and enjoyed the independence that it gave him.
He began competing in 1991 and trained with Stirling Swimming Club.
Anderson, who has cerebral palsy, is also a former British Wheelchair Disco champion.