Can trees grow in dry climates?

Where water is not found naturally in creeks and rivers, or as rainfall, farmers have to drill bores, going down hundreds of feet, to tap into underground water supplies (such as the Great Artesian Basin in Australia). The water is then brought to the surface via windmills. Water may also be diverted from rivers and dams into canals, which eventually feed into the farmers' paddocks. This is an inefficient way to get water, as much can be lost through evaporation.