We explore strategies among farmers in semi-arid Tanzania to cope with drought, and investigate if access to a local supplemental irrigation system (the Ndiva system) can improve coping capacity. Results show high dependency on local ecosystem services when harvests fail, and indicate that farmers commonly exhaust asset holdings during droughts. Ndiva access did not have any direct effects on coping capacity, but seemed to have some indirect effects. Drawing on our findings we discuss the complexity of escaping persistent dryland poverty, and outline the circumstances under which small-scale water system technologies, such as Ndiva irrigation, may help.