In agriculture, short-term objectives to increase farm income often conflict with long-term objectives to maintain soil fertility. In semi-arid regions such as Northern Tunisia, deficit irrigation to reduce water use and nitrate leaching may reduce the long-term production potential due to soil salinization. Until now, the impact of water management on nitrate leaching, soil salinization, production potential and economic performance of irrigated farms has not been quantified. This study aims at analyzing the effects of different water and nutrient management on three farm performance indicators, i.e. nitrate leaching, soil salinization and farm income. We use a new analytical bio-economic approach to assess the environmental and economic performance of irrigated farming systems in northern Tunisia (Cebalat region) taking into account inter and intraannual rainfall variability and different soil types and crop rotations