We monitored dynamics of stem water deficit (ΔW) and needle water potential (Ψ) during two consecutive growing seasons (2011 and 2012) in a dry inner Alpine environment (750 m above sea level, Tyrol, Austria), where Pinus sylvestris, Picea abies and Larix decidua form mixed stands. ΔW was extracted from stem circumference variations, which were continuously recorded by electronic band dendrometers (six trees per species) and correlations with environmental variables were performed. Results revealed that (i) ΔW reached highest and lowest values in P. abies and L. decidua, respectively, while mean minimum water potential (Ψ(ea)) amounted to -3.0 MPa in L. decidua and -1.8 MPa in P. abies and P. sylvestris. (ii) ΔW and Ψ(ea) were significantly correlated in P. abies (r = 0.630; P = 0.038) and L. decidua (r = 0.646; P = 0.032). (iii) In all species, ΔW reached highest values in late summer and was most closely related to temperature (P < 0.001). Results indicate that all species were undergoing water limitations as measured by increasing ΔW throughout the growing season, whereby P. abies most strongly drew upon water reserves in the living tissues of the bark. Quite similar ΔW developed in drought-sensitive L. decidua and drought-tolerant P. sylvestris indicate that various water storage locations are depleted in species showing different strategies of water status regulation, i.e. anisohydric vs. isohydric behavior, respectively, and/or water uptake efficiency differs among these species. Close coupling of ΔW to temperature suggests that climate warming affects plant water status through its effect on atmospheric demand for moisture.