Water stress and temperature impose fundamental limits to forest productivity. Stresses caused by fluctuating or extreme temperatures or limited water availability vary both seasonally and from year to year. The role of these stresses should be considered when investigating the causes of declines in forest productivity. Forest growth, or carbon gain, can be related quantitatively to three components: leaf area, rate of net photosynthesis and rate of respiration. This paper examines effects of temperature and water supply on these components with particular reference to loblolly pine (Pinus taeda L.), a species of economic importance in the southeastern United States where declines, of unknown cause, in forest productivity have been reported.