Technical Abstract: 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. 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.