The effects of water and nutrient availability on photosynthetic capacity of juvenile and adult leaves of Eucalyptus globulus Labill. seedlings were evaluated by measuring oxygen evolution at light and CO(2) saturation. Seedlings supplied with near optimal amounts of water and nutrients had higher growth rates than non-irrigated, unfertilized control seedlings, but photosynthetic capacity was similar in both treatments. Differences in foliar nitrogen concentrations between the two treatments were minor, which largely explains why the growth response to near optimal nutrition was not associated with an increase in photosynthetic capacity per unit leaf area. Nevertheless, the photosynthetic capacity of juvenile leaves decreased from distal to proximal positions in the mid-crown and was positively correlated with leaf nitrogen concentration expressed on a leaf surface area basis. During the dry season, non-irrigated, unfertilized seedlings fixed carbon at lower rates than irrigated seedlings supplied with near optimal nutrition because of stomatal closure even though photosynthetic capacity was unaffected by water deficits. In both treatments, there were differences between the photosynthetic capacity of adult and juvenile leaves that were largely explained by the low specific leaf area of adult leaves.