Large-scale vegetation restoration has been conducted in China's Loess Plateau over the past several decades to control soil and water loss. However, these efforts have not followed any specific guidelines to select plant species that balance the twin goals of vegetation restoration and water demand. In the present study, we measured canopy transpiration characteristics of oriental arborvitae (Platycladus orientalis) and Chinese pine (Pinus tabulaeformis), two species that are commonly planted in restoration efforts, and recorded water input and output for these two species during the growing season. P. tabulaeformis had a higher tolerance than P. orientalis to warmer and drier environments and used water over a wider time span. Canopy transpiration significantly increased when rainfall exceeded 15 mm and was negatively correlated with net change of soil water content. Meanwhile, rainless intervals also affected canopy transpiration recovery. Canopy transpiration of P. tabulaeformis was 25.4% higher than that of P. orientalis. Soil water content under P. orientalis declined by 28.4% after the growing season, while it slightly increased under P. tabulaeformis (0.7%). Our results suggested that although P. tabulaeformis plantation had higher canopy transpiration, this water use did not drastically reduce soil water content, mainly due to the lower evaporation caused by the dense canopy cover. However, the low soil water content also implied that a better management, such as a mixed plantation of these two species and other supplemental water-conservation techniques, should be considered to better use water in this semiarid region.