We developed a ring-width chronology of teak (Tectona grandis L.) from a moisture stressed area in Maharashtra, India. Bootstrapped correlation analysis indicated that moisture index (MI) and Palmer Drought Severity Index (PDSI) showed better performance rather than same year rainfall over the region. Tree-ring variations were most correlated positively with PDSI during different seasons compared with MI. Significant strong positive correlation with MI, and negative association with temperature and potential evapotranspiration (PET) were found during previous and current year post-monsoon (ON). This study shows that the moisture availability during the post-monsoon of the previous year has a significant role in the development of annual growth rings. The reconstructed previous year post-monsoon (−ON) moisture index for the period 1866–1996 indicates 3.5 and 29.3 years periodicities.