Fruit thinning can be used to relieve water stress in peach but it is not known how fruit quality will respond under water limited conditions. To elucidate this, we applied, over the growing seasons of 2003 and 2004, irrigation and fruit thinning treatments to ‘O’Henry’ peach at the onset of Stage III of fruit development. The treatments were full irrigation (FI) and no irrigation (NI) with each receiving three crop load levels: light, commercial and heavy. Fruit size and fruit skin colouration were lower in NI than in FI but the following were higher in NI fruit: firmness, juice titratable acidity and electrical conductivity, and concentrations of dry matter and soluble solids. All the quality parameters were significantly correlated with tree water status, expressed as midday stem water potential. NI fruit matured 5–10 days later than FI fruit. The increased dry matter concentration, juice acidity, and electrical conductivity in NI fruit were indicative of lower quality at harvest. Choosing a light crop load was not effective in improving NI fruit quality except for the size. Since fruit size is the most important fruit quality attribute, its increase might compensate for yield losses resulting from heavy fruit thinning. Nevertheless, when heavy thinning is performed for mitigation of water stress in Stage III, the overall fruit quality will suffer if severe water stress is inevitable because of shortage or lack of irrigation water.