Water-soluble extracts from compost may represent an alternative nutrient and organic matter source for crop production under drip irrigation. Dissolved organic matter (DOM), extracted from composted "alperujo", the main by-product from the Spanish olive oil industry, was applied to soil alone or in combination with either Glomus intraradices Schenck and Smith or a mixture of G. intraradices, Glomus deserticola (Trappe, Bloss. and Menge) and Glomus mosseae (Nicol and Gerd.) Gerd. and Trappe. Response measurements included mycorrhizal colonisation, nutrient uptake and growth of Medicago sativa and microbiological and physical properties in the rhizosphere. Dissolved organic matter was added to soil at concentrations of 0, 50, 100 or 300mgCkg(-1) substrate. During the four months of the experiment, the plants were harvested three times. Both mycorrhizal inoculation treatments significantly increased soil aggregate stability. Only the mycorrhizal inoculations increased microbial biomass C and protease and phosphatase activities and decreased water-soluble C, particularly the mixture of arbuscular mycorrhizal fungi. At the third harvest, the greatest increase in growth of M. sativa was observed in the inoculated plants with shoot biomass being 38% greater than for plants grown in the soil amended with the highest dose of DOM and 57% greater than for control plants. The addition of DOM was not sufficient to restore soil structure and microbial activity and did not affect the mycorrhizal development of introduced populations of arbuscular mycorrhizal fungi, but, depending on the dose, its fertiliser efficiency for improving plant growth was apparent.