Brazil is the world’s largest sugarcane producer with projections for expanding the current area by 30% in the coming years, mainly in areas previously occupied by pastures. We assess soil water changes induced by land-use change (LUC) for sugarcane expansion in the central-south region of Brazil. For that purpose, soil samples were collected in a typical LUC sequence (native vegetation–pasture–sugarcane) in two contrasting soil textures (i.e., sandy and clayey). Soil hydro-physical properties such as pores size distribution, bulk density, soil water content, water tension, and drainage time at field capacity, plant-available water, and S-index were analyzed. Our data showed that long-term LUC from native vegetation to extensive pasture induced severe degradation in soil physical quality and soil water dynamics. However, conventional tillage used during conversion from pasture to sugarcane did not cause additional degradation on soil structure and soil water dynamics. Over time, sugarcane cultivation slightly impaired soil water and physical conditions, but only in the 10–20 cm layer in both soils. Therefore, we highlight that sustainable management practices to enhance soil physical quality and water dynamics in sugarcane fields are needed to prevent limiting conditions to plant growth and contribute to delivering other ecosystem services.