Transporting water to supply livestock is one of the great challenges of the drylands. Ranchers usually make impoundments, filled by runoff, to access freshwater for cattle supply in flat rangelands. The aim of this study was to understand rainfall-runoff generation and water storage temporal dynamics of impoundments in the Dry Chaco rangelands (Argentina). Thus, we instrumented six impoundments over three consecutive years and analyzed water storage data by developing a probabilistic model. For all impoundments, the rainfall event size thresholds to generate runoff presented values between 15 and 33 mm. Once they reached this threshold, the water gain response slopes presented values between 19 and 99 m3 mm−1. Loss patterns of water storage were described by exponential or linear functions. The predicted water storage dynamics presented high accuracy with the observed time series for all impoundments (RMSD between 380 and 1320 m3). The model only needs daily rainfall and air temperature to be run, making it easy to be used by scientists, ranchers, or local decision makers. It may be used to explore the hydrological functioning of small and seasonal water bodies of different sites of the world exposed to drought episodes caused by high climate variability and/or climate change.