Cereal Cyst Nematode (CCN, Heterodera avenae Woll.) has been shown to be a devastating pest for wheat (Triticum aestivum L.) in dryland regions. Following in the season preceding the cropping season has been hypothesized to sanitize the soil of CCN and allow wheat production. This paper explores management options that might allow the continuous production of wheat in these regions. In a 20-year study in the Negev, Israel, on a sandy loam, loessial, soil, it was found that in those seasons with high rainfall there was virtually no decrease in annual wheat yields for continuous crops as compared to biennial fallow yields obtained with the conventional wheat system. The hypothesis that high soil water content substantially alleviates the damage resulting from CCN infestation was confirmed in a pot study. A practical solution for maintaining high soil water content in the field was to leave a straw mulch on the soil surface to decrease soil evaporation. A chopper was added to a grain harvester to finely chop the straw so that it settles to the soil surface through the stubble, and a no-till drill was used for sowing through the straw. The straw-mulch system was shown to result in annual yields from continuous wheat that were equivalent to yields in alternate years with the conventional fallow wheat system, thereby doubling wheat production in this dryland region.