Vapour pressure deficit (VPD) has a significant effect on the amount of water required by the crop to maintain optimal growth. Data required to calculate the mean VPD on a daily basis are rarely available, and most models use approximations to estimate it. In APSIM (Agricultural Production Systems Simulator), VPD is estimated from daily maximum and minimum temperatures with the assumption that the minimum temperature equals dew point, and there is little change in vapour pressure or dew point during any one day. The accuracy of such VPD estimations was assessed using data collected every 15 min near Wagga Wagga in New South Wales, Australia. Actual vapour pressure of the air ranged from 0.5 to 2.5 kPa. For more than 75% of the time its variation was less than 20%, and the maximum variation was up to 50%. Daytime mean VPD ranged from 0 to 5.3 kPa. Daily minimum temperature was found to be a poor estimate of dew point temperature, being higher than dew point in summer and lower in winter. Thus the prediction of vapour pressure was poor. Vapour pressure at 0900 hours was a better estimate of daily mean vapour pressure. Despite the poor estimation of vapour pressure, daytime mean VPD was predicted reasonably well using daily maximum and minimum temperatures. If the vapour pressure at 0900 hours from the SILO Patched Point Dataset was used as the actual daily mean vapour pressure, the accuracy of daytime VPD estimation was further improved. Simulations using historical weather data for 1957–2002 show that such improved accuracy in daytime VPD estimation slightly increased simulated crop yield and deep drainage, while slightly reducing crop water uptake. Comparison of the APSIM RUE/TE and CERES-Wheat approaches for modelling potential transpiration revealed differences in crop water demand estimated by the two approaches. Although the differences had a small effect on the probability distribution of simulated long-term wheat yield, water uptake, and deep drainage, this finding highlights the need for a scientific re-appraisal of the APSIM RUE/TE and energy balance approaches for the estimation of crop demand, which will have implications for modelling crop growth under water-limited conditions and calculation of water required to maintain maximum growth.