The analysis of the effect of water stress on the photosynthesis and water relations of wheat varieties ‘C 306’ and ‘Kalyansona’ showed that stress affected both stomatal and nonstomatal components of photosynthesis. The comparatively higher photosynthesis in variety C 306 under water stress conditions might probably be by the maintenance of higher turgor due to higher water potential of its leaves. The variability in photosynthesis could not be explained in terms of the stomatal resistance values.