Effects of available soil volume (ASV) on growth, water relations and bud fertility of drip‐irrigated Shiraz grapevines (Vitis vinifera) were examined during their establishment in the 2000/01 growing season under field conditions in the Goulburn Valley, Australia. Vines were planted into different size subterranean containers to create a range of confined ASV treatments (viz. 0.15, 0.4, 0.8 and 1.2 m3/vine referred to as ASV15, ASV40, ASV80 and ASV120, respectively) and compared with a deep ripped treatment where the ASV was unconfined (ASVUC). Pruning weight, trunk cross‐sectional area, and daily average fractional photosynthetically active radiation interception (fdaily) increased with increasing ASV but were lowest in the ASVUC treatment. fdaily attained a maximum by mid‐February 2001 in ASV15 but continued to increase in all other treatments. Water relations data showed high leaf water potential (φleaf) in ASV15 compared to the other treatments. Our results suggest that reduced growth in smaller soil volumes was not a consequence of water stress. Leaf conductance (gL) tended to be low in the ASV15 treatment in comparison with the ASVUC treatment. Increasing ASV from 0.15 to 1.2 m3/vine increased the number of bunches per vine in the following season by 32%. This increase was not due to improvement in the number of bunches per shoot, but resulted from an increased number of shoots bursting per node. By contrast, ASVUC significantly reduced bud fertility. The implications of these results for vine establishment in shallow soils are discussed.