Most studies concerning the functional implications of C4 photosynthesis have focused on enhanced carbon fixation under high temperature, low atmospheric CO2, and/or water limitation, yet the biochemical and anatomical reorganization required for optimal C4 function should also impact plant hydraulics and water use. C4 grasses have increased bundle-sheath size and vein density, and these are thought to have been anatomical precursors for the evolution of C4 from C3 ancestors. Paradoxically, these traits should also lead to higher leaf capacitance and higher leaf hydraulic conductance, yet C4 photosynthesis lowers water demand and increases plant water use efficiency. Here, we use phylogenetic analyses, physiological measurements and photosynthetic modeling to examine the reorganization of hydraulic traits in C4 grass lineages and in closelyrelated C3 grasses. Evolutionarily young C4 lineages have higher leaf hydraulic conductance, capacitance, turgor loss point, and lower stomatal conductance than their C3 relatives. In contrast, species from older C4 lineages show decreased leaf hydraulic conductance and capacitance, indicating that over time, C4 plants have optimized hydraulic investments while maintaining their C4 anatomical requirements. The "overplumbing" of young C4 lineages lead to a reduced positive correlation between maximal assimilation rate and leaf hydraulic conductance, decoupling a key relationship between hydraulic traits and photosynthesis generally observed in vascular plants.