Eddy covariance measurements of land-atmosphere energy, carbon, and water exchange now span multiple decades at some sites, supporting an improved understanding of flux interannual variability (IAV) and its ecophysiological and physical controls. Most eddy covariance IAV studies have focused on temperate forest ecosystems, where carbon fluxes are large and flux records are longest – but also where IAV is much lower than in dryland regions, which have been identified as an essential driver of the trend and variability in the global terrestrial carbon sink. In this study, we leveraged 19 years of continuous micrometeorological measurements at the AmeriFlux US-SRM mesquite savanna site in southern Arizona, USA to quantify the IAV, trends, and drivers of carbon fluxes during the distinct spring and summer growing seasons. We also assessed the ability of modern satellite and land surface models to capture the IAV of seasonal water and carbon fluxes. Annual net ecosystem production (NEP) was small and highly variable (23 +/- 64 gC m − 2 yr−1). Precipitation and associated measures of water availability determined most of the variability in NEP, largely through their influence on annual and seasonal gross ecosystem productivity (GEP) as opposed to ecosystem respiration (ER). Root-zone soil moisture captured between 73% (spring) and 85% (summer) of GEP variability and between 73% (spring) and 58% (summer) of ER variability. Throughout the study period, soil moisture and greenness increased with associated increases in GEP, ER and NEP. These trends were strongly influenced by very productive and wet summer growing seasons during the last two years, which were characterized by abundant understory grass cover. Typically, less than half of the variability in growing season GEP and evapotranspiration was captured by satellite-based estimates and land surface model simulations with local site forcing and calibration, highlighting the ongoing utility of long-term datasets to support careful model testing and improvement.