Short rotation Eucalyptus plantations offer great potential for increasing wood-fiber production in the southern United States. Eucalyptus plantations can be highly productive (>35 m(3) ha(-1) year but they may use more water than intensively managed pine (primarily Pinus taeda L) plantations. This has raised concern about how expansion of Eucalyptus plantations will affect water resources. We compared tree water use, stem growth, and WUE (kg wood per m(3) water transpired) in adjacent nine-year-old Eucalyptus benthamii and P. taeda plantations with similar stand density and leaf area. Sap flux (F-d, g cm(-2) s(-1)) was measured continuously over one year using thermal dissipation probes. Stem biomass, stem growth, tree water use (E-t, L day(-1)), canopy transpiration per unit leaf area (E-1, mmol m(-2) s(-1)), and canopy stomatal conductance (G(s), mmol m(2) s(-1)) were quantified. Eucalyptus had higher daily Fd (196.6 g cm(-2) day(-1)) and mean daily E-t (24.6 L day(-1)) than pine (105.8 g cm(-2) day(-1), 15.2 L day(-1)). Eucalyptus exhibited a seasonally bimodal pattern in daily E-t that did not occur in pine. Monthly E-t was23-51% higher in Eucalyptus and differences between species were greatest in the spring and fall. Annual E-t was 32% higher in Eucalyptus (9.13 m(3) H2O year(-1)) than pine (5.79 m(3) H2O year(-1)). Annual stem biomass increment was greater in Eucalyptus (Eucalyptus: 22.9; pine: 11.8 kg tree(-1) year(-1)), and Eucalyptus had greater WUE (Eucalyptus: 2.86; pine 1.72 kg biomass m(-3) H2O year(-1)). Pine exhibited a lower seasonal minimum and higher seasonal maximum leaf area index (LAI). At low LAI, there was no significant difference between species in E-l or G(s); however, at maximum LAI, pine E-l and G(s) were 46 and 43%, respectively of rates observed in Eucalyptus. The species differed in G(5) response to vapor pressure deficit (D). At a similar reference G(s) (G(s),(ref) at D =1 kPa), pine exhibited greater stomatal sensitivity to D. These results suggest that (1) Eucalyptus trees had higher sap flux and total water use than pine, (2) Eucalyptus had greater stem growth and WUE, and (3) species differences in water use were driven primarily by differences in E-l and G(s). Published by Elsevier B.V.