Dynamic behaviour is significantly important in the design of large rotor systems supported on water-lubricated rubber bearings. In this study, the mathematical model of elastohydrodynamic lubrication of the bearing is established based on the theory of hydrodynamic lubrication after considering the elastic deformation of rubber, and the dynamic characteristics of water-lubricated rubber bearings are analysed under small perturbation conditions according to the load increment method and the finite difference method. Next, the differential equation of rotor systems coupled with the water-lubricated rubber bearing is deduced using Lagrange's approach, and its critical speeds, stability, and unbalanced responses are analysed in detail. The numerical results show that several parameters, such as the eccentricity, lengthdiameter ratio, and clearance of bearing and the rotating speed of the rotor, have a great impact on the dynamic performance of water-lubricated rubber bearings, and this influence cannot be ignored, especially in the case of large eccentricity ratios. The dynamic characteristics of rotor systems guided by water-lubricated rubber bearings reveal that the critical speeds are much lower than the ones under the rigid supports because of the elastic deformation, and they also indicate that the rotor system supported on water-lubricated rubber bearings has a weaker stability. In addition, the steady-state responses of the rotor system are analysed when the mass unbalance of the propeller exists, and the effect of the thickness of the rubber liner is also considered.