Ants are abundant in desiccating environments despite their high surface area to volume ratios and exposure to harsh conditions outside the nest. Red harvester ant (Pogonomyrmex barbatus) colonies must spend water to obtain water: colonies lose water as workers forage outside the nest, and gain water metabolically through seeds collected in foraging trips. Here we present field experiments showing that hydrated P. barbatus foragers made more foraging trips than unhydrated nestmates. The positive effect of hydration on foraging activity is stronger as the risk of desiccation increases. Desiccation tests showed that foragers of colonies that reduce foraging in dry conditions are more sensitive to water loss, losing water and motor coordination more rapidly in desiccating conditions, than foragers of colonies that do not reduce foraging in dry conditions. Desiccation tolerance is also associated with colony reproductive success. Surprisingly, foragers that are more sensitive to water loss are from colonies more likely to produce offspring colonies. This could be because the foragers of these colonies conserve water with a more cautious response to desiccation risk. An ant's hydration status may influence its response to the olfactory interactions that regulate its decision to leave the nest to forage. Thus variation among ant colonies in worker physiology and response to ambient conditions may contribute to ecologically significant differences among colonies in collective behavior.