Rainfall and soil moisture availability vary greatly both spatially and temporally. They are prime factors influencing species distribution patterns, diversity and habitat associations in a range of biomes, and limit primary productivity in many natural ecosystems, as well as in forestry and agricultural systems (Hawkins et al. 2003, Kozlowski & Pallardy 1997, Lieth 1975). Projections of drying trends, and increased frequency and intensity of drought events with climate and land-use changes (Hulme & Viner 1998, IPCC 2001) have fuelled an increased interest in the role of drought in determining the structure and function of natural and managed forest systems (Allen & Breshears 1998, Miles et al. 2004). Such projections accentuate the need to assess, understand and predict plant reactions to drought, as well as soil moisture variation at different scales.