The efficient use of water by modern irrigation systems is becoming increasingly important in arid and semi-arid regions with limited water resources. At present and more so in the future, irrigated agriculture will take place under water scarcity. Insufficient water supply for irrigation will be the norm rather than the exception, and irriation management will shift from emphasizing production per unit area towards maximizing the production per unit of water consumed, the water productivity. Deficit irrigation is becoming an important stratege to reduce agricultural water use in arid and semi-arid regions. The present experiments were carried out at the Experimental Station of Soil and Water Department, Faculty of Agricultural, Sssiut University, situated at 27, 11'N latitude, 31, 10'E longitude. The objective of this research was to investigate the effect of two drip irrigation methods and four different deficit irrigation levels on potato yield and irrigation water use efficiency (IWUE = yield/irrigation) at winter season 2012. The surface drip irrigation (SDI) and subsurface drip irrigation (SSDI) irrigation methods were used. The levels were full irrigation (100% ETC), 85% of full irrigation (85%ETC), 70% of full irrigation (70%ETC) and 55% of full irrigation (55%ETC) treatments. The results indicated that the SDI and SSDI irrigation methods result in a significant difference on yield. However, SSD has more advantage than SDI methed. Irrigation levels resulted in significant difference on yield. Highest yield was obtained from (100%ETC) which grew under no stress. Water stress significantly affected the yield of potato production. Deficit irrigation tends to increase water use efficiency and decrease the yield. Water deficiency more than 30% of the irrigation requirements could not be suggested. Irrigation water use efficiency of SSD irrigation method had generally higher values than SD irrigation method. Treatment 85% (ECT) gave maximum irrigation water use efficiency (IWUE). SSDI irrigation provide significant advantage on yield and IWUE, compared SDI irrigation in potato production under experimental conditions. Therefore, the SSDI irrigation method would be recommended in potato production under arid environment