The aim of the present study was to determine if the presence of inhibited L4 Ostertagia ostertagi populations during the housing period influenced the level of acquired immunity in calves at the start of the second grazing season. Four groups (A-D) of first season grazing calves were turned out onto a heavily infected pasture for five months, while the fifth group (E) was kept as uninfected controls. At housing all group A calves were necropsied for worm counts. A mean total of 78915 Ostertagia worms were found, of which 85% were in the early L4 stage. The calves of group C were dewormed with ivermectin at housing, while groups B and D remained untreated. After the calves were housed, egg counts, pepsinogen and antibody levels all declined in groups B, C and D, but during the second half of the housing period pepsinogen and antibody levels increased again in groups B and D. The effect of housing on the resident worm population was evaluated by slaughtering all group B calves for worm counts at the end of the housing period. A mean burden of 57,950 Ostertagia was present, with 78% as early L4 larvae. The remaining three groups (C, D and E) were treated with oxfendazole and turned out on the same pasture as the previous year for a challenge period of four weeks. In the control calves (group E) the egg output rose steeply, while egg counts remained low in groups C and D. In addition the worm burdens of the previously infected groups C and D were significantly reduced (75-90%), and the percentage of inhibited L4 larvae was significantly increased compared to the control group E. No significant difference was observed between the calves that were treated at housing (group C) and the untreated animals of group D. It was concluded that the continued presence of an inhibited L4 population during housing was not essential for maintenance of immunity.