Irrigation water management in tree crops requires timely and accurate determination of crop water status for making irrigation scheduling decisions. However, commonly used techniques for measuring tree water statuses, such as stem water potential measured with pressure chambers or leaf stomatal conductance measured with porometers, are manually operated and lack the timeliness for making irrigation decisions in real-time. The objective of this research was to develop and field test a new electronic sensor system capable of continuously monitoring tree trunk relative water content. Replicated sensors were installed in experimental orchards planted with pomegranate and nectarine trees. Data collected from the sensor readings were compared with periodic trunk diameter, stem water potential, and leaf stomatal conductance measurements. Strong linear correlations were observed between sensor readings and tree trunk diameter variations but with a 3–4-hour phase lag. Sensor readings were also strongly correlated to stem water potential (R2?=?0.58-0.85) and leaf stomatal conductance (R2?=?0.60-0.84) for both pomegranate and nectarine trees. The next step is to further validate the sensors in commercial orchards and apply the sensors for making real-time irrigation water management decisions.