Arbuscular mycorrhizal fungi are common in moderately saline soil (colonized by Distichlis stricta) in an inland boreal salt pan in north-central Manitoba, but are absent from adjacent soil that is extremely saline (colonized by Puccinellia nuttalliana). In order to determine if this absence was due to the lack of suitable plant hosts or to edaphic factors, mycorrhizal colonization, vegetation composition, soil salinity and water content were examined along transects between the two vegetation zones. Correlation and principal component analyses revealed that mycorrhizal colonization of P. nuttalliana was positively linked to cover of Distichlis stricta and soil water content, and negatively linked to bare ground. The area closest to the point of salt seepage was uncolonized by mycorrhizal fungi. A transplant experiment confirmed that mycorrhizal fungi are unable to sustain colonization in this area of the salt pan. In this inland salt pan, colonization by mycorrhizal fungi is limited by edaphic factors, and not by the absence of suitable host plants, suggesting that mycorrhizal fungi have a lower limit of salinity tolerance than halophytes such as P. nuttalliana.