The effects of root inoculation with mycorrhizal fungi (Glomus mosseae) on the water relations and carbon dioxide assimilation rates of grapevine (Vitis vinifera cv. Cabernet Sauvignon) plants are reported. Cuttings of Cabernet Sauvignon were grafted onto eight different grapevine rootstocks and the composite plants were grown in pots. The potting media of half the pots of each rootstock were inoculated with Glomus mosseae. Half of each of the inoculated and the non-inoculated pots were subjected to five-day and eight-day drought periods. The control (non-stressed plants) was watered throughout the experiment three times per week to maintain pot media close to field capacity. Foliar growth, leaf phosphorus concentrations and drought tolerance were greater in the inoculated than in the non-inoculated plants. After five days of drought stress, predawn leaf water potentials ranged between −0.5 and −1.07 MPa in non-mycorrhizal vines and between −0.32 MPa and −0.61 MPa in mycorrhizal vines. Similarly, net carbon dioxide assimilation rates in five-day stressed plants ranged from 1.5 to 4.6 μmol m−2 s−1, and from 2.9 to 6.1 μmol m−2 s−1 respectively. Some drought-sensitive rootstocks (775P, 101–14Mgt and 5BB) infected with mycorrhizal fungi and subjected to drought for eight days showed much-improved drought resistance compared with non-infected rootstocks of the same varieties. In drought-stressed plants, differences between the various rootstocks were significant. For example, rootstocks 110R, 140Rug, 1103P and 44–53 M had the highest predawn leaf water potentials and photosynthetic rates after five days of drought, independent of the mycorrhizal infection. These findings show that colonization of the root system by mycorrhizal fungi, may improve the water status of non-irrigated vines.