A disease known as water belly (barriga d'água), characterized by chronic progressive ascites, affects sheep in the semiarid region of northeastern Brazil. The objectives of this investigation were to study the disease and to determine its cause. Only sheep grazing for long periods in pastures where Tephrosia cinerea represents 80% to 100% of the available forage are affected. Most animals die after a clinical manifestation period of some weeks or months, but others recover when they are withdrawn from the pastures or after the first rains. At necropsy, large amounts of liquid were found in the abdominal cavity, and the liver was hard, with an irregular surface. On histology examination, the main liver lesion was chronic periportal and subcapsular fibrosis with bridging. The disease was produced experimentally in 1 sheep by the administration of large amounts of T. cinerea for 232 days. Another sheep, recovered from the spontaneous disease, had clinical signs after the ingestion of large amounts of the plant for 40 days. Seeds and leaves of the plant were examined by gas chromatography-mass spectrometry for the presence of pyrrolizidine alkaloids with negative results. It is concluded that the disease is caused by the ingestion of T. cinerea.