Water status controls plant physiology and is key to managing vineyard grape quality and yield. Water status is usually estimated by leaf water potential (LWP), which is measured using a pressure chamber; however, this method is difficult, time-consuming, and error-prone. While traditional spectral methods based on leaf reflectance are faster and non-destructive, most are based on vegetation indices derived from satellite imagery (and so only take into account discrete bandwidths) and do not take full advantage of modern hyperspectral sensors that capture spectral reflectance for thousands of wavelengths. We used partial least squares regression (PLSR) to predict LWP from reflectance values (wavelength 350–2500 nm) captured with a field spectroradiometer. We first identified wavelength ranges that minimized regression error. We then tested several common data pre-processing methods to analyze the impact on PLSR prediction precision, finding that derivative pre-processing increased the determination coefficients of our models and reduced root mean squared error (RMSE). The models fitted with raw data obtained their best results at around 1450 nm, while the models with derivative pre-processed achieved their best estimates at 826 nm and 1520 nm.