With the help of differential equations with piecewise constant arguments, we first propose a discrete analogue of continuous time ratio-dependent predator-prey system, which is governed by nonautonomous difference equations, modeling the dynamics of the prey and the predator having nonoverlapping generations. Then, easily verifiable sufficient criteria are established for the existence of positive periodic solutions. The approach is based on the coincidence degree and the related continuation theorem as well as some priori estimates. (C) 2002 Elsevier Science Ltd. All rights reserved.