Cropping systems in arid and semi-arid environments are often imposed on fragile environments and have generally succeeded to the extent that the environment could be altered through irrigation. Water sources for irrigation include both surface and ground water. Improvements in irrigation use efficiency have often led to increased water use instead of water savings as more systems have been installed. Also, as underground water becomes more scarce, more energy is required to extract water from greater depths. Increasing demands for alternative water uses by growing populations as well as depletion of historic water sources as use exceeds renewal rates make many traditional cropping systems non-sustainable over time. The Texas High Plains exemplifies these challenges where agriculture depends heavily on irrigation with water withdrawn from the Ogallala Aquifer at non-sustainable rates of withdrawal. Crop rotations and integrating crop and livestock systems could reduce irrigation water use and diversify income compared with a crop monoculture. Many such regions were historically a grazing land ecosystem and offer opportunities for pastoral systems and benefits derived from such diversification. Long-term comparisons, begun in 1998 in the Texas High Plains, of a cotton monoculture with an integrated cotton, forage, beef cattle system has demonstrated that water savings by the integrated system can be achieved at sustainable levels of profitability while diversifying income sources. Other benefits of the integrated system included reduced soil erosion, lower chemical input requirements, improved soil microbial and enzymatic activities, enhanced carbon sequestration, and greater rainfall infiltration than the monoculture cropping system. Maximum crop yields can shift short-term profitability to the monoculture system but long-term stability depends on environmental benefits demonstrated by the integrated system. Challenges of integrated systems include local infrastructure focused on monoculture systems, producer adoption of alternative strategies, and greater knowledge and skill required to manage integrated systems.