The rainout shelter plots at Mississippi State, MS were used to study the effects of long-term water deficits and nitrogen on square and flower production and yield of cotton. Cumulative square and flower production were directly related to the amount of nitrogen applied and inversely related to drought duration. Decreases in cumulative net number of fruiting forms in stressed plants were attributed mainly to decreased production of fruiting sites as a consequence of water stress rather than an increase in square and flower abscission. Lint, seed and seedcotton yield increased with increasing rate of applied nitrogen and decreased with stress period. The increase in yield and yield components was attributed mainly to a greater number of harvestable bolls, although weight per seed, lint weight and number of seeds per boll increased consistently. Conversely, the reduction in yield and yield components of stressed cotton plants was due mainly to a decreased number of harvestable bolls, although consistent decreases in boll attributes due to drought were also evident.