The Southeastern U.S. receives 130 cm of annual rainfall, however cotton production is still limited by water.  Irrigation, when available, is used to supplement natural precipitation to sustain profitable crop production. Increased water capture would improve water use efficiency and reduce irrigation requirements, thus reducing input costs and use of natural resources.  Furrow diking is a cost effective management practice that is designed to create a series of depressional storage basins in the furrow between crop rows to catch and retain rainfall and/or irrigation water.  Furrow diking has been widely accepted and adopted in arid regions, but has not been adapted for cotton production in the Southeast.  The objective of this study was to compare water use efficiency between furrow diked and non-diked cotton in Southwest Georgia.  Studies were conducted in irrigated and non-irrigated cotton each year from 2005-2007.  Water availability (soil water potential) was used to base irrigation timing and validate variability in water capture.  In rainfall simulation, furrow diking reduced runoff and erosion by 3.5 times compared to non-diked cotton.  Based on rainfall simulation (equal amount and duration), furrow diking increased infiltration by 38%, resulting in 7.1 days of estimated plant available water for furrow diked plots and only 3.9 days of estimated plant available water for non-diked plots.  In 2006 and 2007, an average of 6.3 cm of irrigation was saved by furrow diking.  Non-irrigated cotton yield was improved by 52% in 2006.  Overall water savings and economic feasibility including irrigation timing, practice adoption, energy consumption, and yields will be discussed.