The objective of this study was evaluate the efficiency in water and food use in sheep production, using two new traits (residual water intake - RWI; residual feed and residual water intake - RFRWI). For this purpose, we evaluated the relationships between the traits total water intake, RWI and RFRWI with water measures, productive performance and carcass traits (ultrasound). We used 32 lambs with age of 3 months: 16 Santa Ines breed (8 males and 8 females) and 16 crossbred 7/8 Dorper x Santa Ines (8 males and 8 females). They were fed at an automated feed and water station (Intergado®), where the food and water intake by each animal was measured automatically. Residual water intake (RWI), residual feed intake (RFI) and residual body weight gain (RWG) were calculated using the MIXED procedure in SAS®. Correlation coefficients between total water intake (TWI), RWI and all traits (water measures, performance and carcass traits) were calculated using the CORR procedure (P ≤ 0.05). Total water intake showed mean 3.15 L/day during the study and the RWI ranged from 0.66 L to -0.89 L, which represents a difference of 1.55 L between the most and least efficient animal. There was positive correlation between less efficient animals in water consumption (positive RWI) and water intake (r = 0.31); total water intake in relation to dry matter intake (r = 0.36); total water intake in relation to mid-trial metabolic body weight (r = 0.26); residual feed and residual water intake (r = 0.99) and gain/feed ratio (r = 0.44). There was negative correlation between less efficient animal and dry matter intake in relation to body weight (r= -0.33) and feed conversion ratio (r= -0.44). The evaluation of the new variables, RWI and RFRWI, proved effective in identifying the most efficient animals in water use. Moreover, these findings open the possibility of considering the traits RWI and RFRWI in sheep selection, because performance and carcass traits are not adversely affected by selecting for these new traits.