Conservation tillage has significant potential as a water management tool for cotton production on sandy, drought-prone soils. Plant residue remaining at the soil surface from prior crops serves as a vapor barrier against water loss, reduces raindrop impact energy, slows surface runoff, and often increases infiltration. By increasing infiltration, the potential for greater plant-available water can be enhanced and irrigation requirements reduced. Five years of data were collected to quantify the hydrologic differences between strip till and conventional till production systems. Surface runoff and lateral subsurface flow were measured on six 0.2 ha plots in South Georgia in order to quantify the water-related effects of conservation tillage. Significant differences in surface and subsurface water losses were observed between the conventional and strip tilled plots. Surface runoff from the conventionally tilled plots exceeded that from the strip tilled plots, while subsurface losses were reversed. Surface runoff losses from the conventionally tilled plots exceeded those from the strip tilled plots by 81% (129 mm/year). Shallow lateral subsurface losses from the strip tilled plots exceeded those from the conventionally tilled plots by 73% (69 mm/year). Overall, a net annual gain of 60 mm of water was observed for the strip tilled plots.