Cover crops used as killed mulch have been shown to decrease evapotranspiration, in addition to acting as a barrier against weeds, and providing a habitat for beneficial insects.� Using cover crops could be especially beneficial in semi-arid New Mexico where water use is an ever decreasing commodity.� In this study, six annual cover crop varieties were evaluated in killed-mulch cropping systems in order to measure the potential decrease in water use on chile pepper fields during the growing season.� Additionally, the effect of the killed mulch on weed and insect populations was determined.� Six cover crop cultivars were planted into 101.6 cm beds in a split-plot design, with crop cold-hardiness as the whole plot factor and cover crop variety as the sub-plot factor.� Each replication consists of three beds (60.39cm²), with a total of three replications per cultivars. Three cold-sensitive cultivars crops were planted in September 2005 and three cold-tolerant cultivars crops were planted October 2005, with bare ground as the control.�� Irrigation for each treatment was accomplished through subsurface irrigation and was quantified using water meters.� Chile peppers (Capsicum annuum, cv. �AZ-20') were transplanted into each bed during April 2006.� Data regarding irrigation scheduling, weed densities, insect populations, and vegetable crop yield were taken from the center row of each sub-plot.� Irrigation schedules were established with soil moisture measurements at 20cm and 30cm depth using Frequency Domain Reflectrometry (Diviner 2000^�).� Weed densities were evaluated every two weeks using a quadrat.� Insect populations were monitored weekly by pit-fall traps and sticky traps.� Both the cold-sensitive and cold-tolerant cover crops, the grass varieties established faster, at a greater density, and with less water applied than the legume cover crop varieties.� This illustrates a greater potential benefit of grass cover crops as part of a killed mulch system for water conservation purposes.