Water-use efficiency (WUE) has been recognized as an important characteristic of ecosystem productivity, which links carbon (C) and water cycling. However, little is known about how WUE responds to climate change at different scales. Here, we investigated WUE at leaf, canopy, and ecosystem levels under increased precipitation and warming from 2005 to 2008 in a temperate steppe in Northern China. We measured gross ecosystem productivity (GEP), net ecosystem CO2 exchange (NEE), evapotranspiration (ET), evaporation (E), canopy transpiration (Tc), as well as leaf photosynthesis (Pmax) and transpiration (Tl) of a dominant species to calculate canopy WUE (WUEc=GEP/T), ecosystem WUE (WUEgep=GEP/ET or WUEnee=NEE/ET) and leaf WUE (WUEl=Pmax/Tl). The results showed that increased precipitation stimulated WUEc, WUEgep and WUEnee by 17.1%, 10.2% and 12.6%, respectively, but decreased WUEl by 27.4%. Climate warming reduced canopy and ecosystem WUE over the 4 years but did not affect leaf level WUE. Across the 4 years and the measured plots, canopy and ecosystem WUE linearly increased, but leaf level WUE of the dominant species linearly decreased with increasing precipitation. The differential responses of canopy/ecosystem WUE and leaf WUE to climate change suggest that caution should be taken when upscaling WUE from leaf to larger scales. Our findings will also facilitate mechanistic understanding of the C–water relationships across different organism levels and in projecting the effects of climate warming and shifting precipitation regimes on productivity in arid and semiarid ecosystems.