Increased [CO2] is expected to alter global precipitation patterns, with the intensity of heavy precipitation events increasing. This study examined a 25% increase in seasonal (winter and summer) precipitation on the physiology of Dasylirion leiophyllum (C3 shrub) and Bouteloua curtipendula (C4 grass) in the Chihuahuan Desert. During a five year period (2001-2006) soil moisture, daily carbon gain (Anet), photosynthesis at saturating light (Asat), stomatal conductance (gs), leaf nitrogen [N], and total non-structural carbohydrates were measured and best predictors of Asat evaluated. Asat was controlled more by environmental factors than biochemistry since 90% of Asat was explained by gs in D. leiophyllum and 76% of Asat was explained by gs in B. curtipendula. Indeed, both natural precipitation and supplemental precipitation altered Anet and Asat. Following a wet year, Asat increased in both species. Following a dry year or in average years, supplemental winter precipitation led to increased or maintained Asat and Anet in the summer. Following multiple wet years, increased winter and summer precipitation decreased Asat as a result of limited soil nitrogen. Winter soil moisture was less effective at predicting Asat in both species than summer soil moisture. The ability of precipitation history to predict Asat was more dependent on annual precipitation in D. leiophyllum, but on supplemental seasonal precipitation in B. curtipendula. Leaf [N] controlled Asat to a greater degree in grasses than shrubs. When all physiological parameters were examined together, differences due to annual and seasonal precipitation were driven by leaf [N] and soluble sugar and starch concentrations.