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Taxol® (paclitaxel), an important anticancer agent, is found in many species of yew. As the need for Taxol increases, sustainable sources must be found for this drug. Plants often respond to stress with increased production of terpenoid compounds such as Taxol and related taxanes or hormones such as abscisic acid (ABA). To determine whether water stress would enhance the production and recovery of Taxol from stem clippings, 100 young Taxu×media `Hicksii' shrubs were grown for sustainable production of Taxol from stem clippings for two seasons in the dry climate of the Malheur Experiment Station in Ontario, Ore. Shrubs were grown under minimal, moderate, or severe water stress, and the relationships between taxane content and 1) soil and plant water potentials, 2) percentage of stomatal closure, and 3) ABA content were examined. Severely water-stressed shrubs produced significantly more taxanes and ABA than did the less stressed shrubs. Chemical names used: Taxol; 10-deacetyl baccatin III; baccatin III; 10-deacetyl taxol, cephalomannine; 7-epi; 10-deacetyl taxol; abscisic acid. Taxol is a registered trademark of Bristol-Myers Squibb.