The addition of (2RS, 3RS)-1-(4-chlorophenyl)-4,4-dimethyl-2-1,2,4-triazoI-1-yl-) pentan-3-ol) (paclobutrazol, PP333) at 0.05 or 0.20 ppm to a nutrient solution in which 4-month-old apple (Malus domestica, Borkh.) seedlings were growing, reduced terminal growth and increased root to leaf ratio. Plants pretreated with 0.20 ppm PP333 did not show a reduction in transpiration due to subsequent applied water stress induced by polyethylene glycol (PEG), whereas untreated plants decreased their transpiration in response to PEG stress at −0.5 and −0.75 MPa. The PP333 pretreatment at 0.20 ppm improved water balance of the seedlings since they had a higher water potential than untreated seedlings at equal or higher transpiration rates. Leaf osmotic adjustment to lower water potentials was shown to be leaf age-dependent irrespective of PP333 pretreatment.