The interaction between reduced irrigation capacity and tillage, including the possible conservation of water with reduced tillage systems, is of vital interest to growers. A field study was initiated in the fall of 2001 to determine crop response under a simulated reduction in irrigation. Three tillage systems were replicated three times each under one of four irrigation levels (100% of a recommended amount, 66%, 33%, and 0% or dryland). Tillage systems were conventional tillage, wide-strip tillage and narrow-strip tillage. The test area was planted in triplicate, in a peanut-cotton-corn rotation, with each crop being present each year. A wheat (cv. AGS 1000) cover crop was drill-seeded each fall on conservation tillage plots. Cover crop termination was performed approximately three weeks prior to planting of each crop species. Tillage was significant for peanut yield and net return at the 0% irrigation level only. No trend in yield was evident, however, net return was consistently high with narrow-strip tillage in all years. Irrigation, at any level greater than 0%, masked tillage effects in both yield and net return. These data confirm the suitability of peanut to conservation tillage practices, including both wide- and narrow-strip tillage.