Under the combined pressures of climate change and irrigated cropland expansion, groundwater tables are declining rapidly across arid regions, thereby intensifying water limitation in riparian ecosystems. However, the mechanisms by which dominant riparian tree species coordinate multiple functional traits to maintain carbon-water balance remains poorly understood. This study investigated coordinated ecophysiological trait shifts of Populus euphratica Oliv. along a groundwater-depth gradient (2.19, 4.88, and 7.45 m) in the middle reaches of the Tarim River (China), hereafter referred to as shallow, middle, and deep groundwater depths, respectively. We quantified photosynthetic, hydraulic, stomatal, leaf anatomical and nutrient traits, and estimated long-term intrinsic water-use efficiency (WUEi) from foliar delta C-13. As the groundwater table declined, (1) photosynthetic capacity and photochemical performance decreased, whereas WUEi increased markedly from 38.5 +/- 2.9 to 54.2 +/- 1.0 mu mol mmol(-1), accompanied by the lowest transpiration rate at the deep groundwater depth (4.6 +/- 0.5 mmol m(-2) s(-1)); (2) stomatal and anatomical adjustments consistent with water-loss reduction were observed, including a significant decline in stomatal density from 93.5 +/- 14.5 to 79.3 +/- 17.4 pores mm(-2), and reduced stomatal size and stomatal area fraction (-20.3% and -32.7%, respectively); (3) the percentage loss of hydraulic conductivity increased, whereas sapwood-specific hydraulic conductivity declined, accompanied by greater sapwood investment relative to leaf area, with Huber value rising from 0.06 +/- 0.02 to 0.11 +/- 0.04 mm(2) cm(-2) at deep water depth; and (4) chlorophyll concentrations and leaf water content declined, whereas structural investment increased, as reflected by higher specific leaf mass and leaf dry matter content, and leaf nutrients were enriched, with total nitrogen and total phosphorus increasing by 67.1% and 42.0%, respectively. Trait-WUEi relationships further indicated that WUEi covaried most strongly with leaf anatomical and nutrient traits. These results demonstrate that increasing groundwater depth was associated with coordinated shifts in carbon assimilation, water-use regulation, hydraulic function, and nutrient allocation in P. euphratica. Such trait coordination may help explain how this species persists under chronic water limitation in arid riparian forests.