Three irrigation regimes (250, 450, 650 mm year−1) were applied to guayule (Parthenium argentatum), a rubber-producing plant, in such a way as to provide periods of good soil water status alternating with periods of water stress. The relative water content and transpiration rate of the plants decreased only when the available soil water was depleted to about 40%. Very low values (< 30%) were measured for the relative water content. Water-stressed plants recovered as soon as irrigation was resumed. Growth and biomass accumulation, as well as the yields of rubber and resins, were directly related to the irrigation rates. The water regimes applied and the use of the drip irrigation method resulted in a relatively high water use efficiency.