Drought threatens arthropod communities worldwide. Water limitation affects the quantity and quality of plants available to herbivores as food, and can also affect higher trophic-level consumers through variability in prey quality and reduced availability of suitable habitats. Our study assessed the response of an arthropod community to water limited wheat (Triticum aestivum L.) in a field setting. We used rainout shelters to exclude precipitation, irrigated raised bed plots to create three levels of water availability, and monitored arthropod community development over 8weeks. First, we compared arthropod communities in habitats with different levels of water limitation and found that community composition was reliant on the magnitude of the water stress. This difference was largely due to the loss of piercing-sucking herbivores and predators in high-stress environments. Next, we focused on aphids and their natural enemies to investigate the underlying mechanisms driving community responses using structural equation modeling (SEM). Aphid abundance was negatively affected by water limitation, and this response was primarily associated with stress-induced plant physiological changes and not plant biomass or natural enemy abundance. Natural enemy abundance was also reduced in water-limited habitats, but natural enemies responded to plant biomass and not prey availability. These effects were exacerbated as water stress increased. The absence of natural enemy effects on aphids indicates that top-down predation effects were dampened by strong bottom-up effects of plant water limitation. This study revealed the importance of considering water stress intensity when predicting outcomes of droughts for arthropod communities.