We compared the performance of mycorrhiza-inoculated and non-inoculated radiata pine (Pinus radiata D. Don) seedlings in two field studies. In the first study, above ground growth of 2-year-old container-grown trees was compared after planting in two areas that differed in water availability. Mycorrhizal inoculation significantly improved above ground growth in the 2 years after planting in both areas, especially at the drier site. In the second study, the influence of Rhizopogon roseolus (Corda ex Sturm) Th. Fries and Scleroderma citrinum Pers. on xylem water potential and hydraulic conductance at the soil-root interface of trees established at the same sites was assessed. Nursery inoculations with R. roseolus and S. citrinum improved tree growth during the first 2 years after field outplanting, particularly at the drier site.