Sphagnum fallax (Klinggr.) Klinggr., a moss growing in hollows close to the water table, is more desiccation tolerant than S. nemoreum Scop., a hummock former distributed high above the hollows. Sphagnum fallax recovered to a greater proportion of its predesiccation photosynthetic rate after one and five days of tissue dryness. Further, a greater percentage of S. fallax plants survived five and ten day periods at low tissue water contents. Longer desiccated periods and lower water contents during these periods decreased both photosynthetic recovery and survival.Water contents measured in Bloomingdale Bog (Adirondack Mountains, NY, USA) showed that S. fallax probably dries more frequently and for longer periods than S. nemoreum. These results support previous findings that the greater ability of S. nemoreum to remain moist in the field is the most important character in its success as a hummock former. Greater tolerance of desiccation helps S. fallax to compensate for its greater tendency to become dry, and is a key physiological feature enabling it to dominate hollows.