The thermocouple psychrometer was used to determine water potential, Ψ and its components in the lichen Parmotrema tinctorum. Data suggested that using conventional pressure-volume curves to study the water relations of lichens may give anomalous results, possibly because lichens may contain appreciable amounts of intercellular water. A way of correcting pressure-volume curves to remove the effect of intercellular water is discussed. Parmotrema tinctorum had a very low osmotic potential at full turgor (c. −2.5 MPa), and a low bulk modulus of elasticit (c. 2.1 MPa). As a result, P. tinctorum lost turgor only when the relative water content dropped below 0.47. Likely benefits of this for the lichen are discussed.