This review deals with improving the performance of dryland crops in dry, mainly semiarid, environments. Although such crops are often limited by water, the development of the notion of water-limited potential yield has shown that their yields are often limited strongly by other factors. These factors are explored by dissecting the water-limited potential yield into a framework involving four largely independent components, namely, the potential water supply for the crop; the fraction of that water supply that is transpired; the efficiency with which the crop exchanges water for CO, in producing biomass (Transpiration Efficiency); and the fraction of the biomass that ends up in the grain (Harvest Index). This framework is used to explore a wide range of agronomic possibilities for managing crops so as to get close to the water-limited potential, including managing previous crops, forages and fallows to increase soil water at sowing; reducing evaporative losses from the soil surface; ensuring that sowing and flowering occur at the right times; maximizing soil water extraction by the crop; and ensuring that there is adequate water available during late floral development and grain filling. Such operations often involve trade-offs and risks that must be managed.