Summary Vulnerability to xylem cavitation is a strong predictor of drought‐induced damage in forest communities. However, biotic features of the community itself can influence water availability at the individual tree‐level, thereby modifying patterns of drought damage. Using an experimental forest in Tasmania, Australia, we determined the vulnerability to cavitation (leaf P50) of four tree species and assessed the drought‐induced canopy damage of 2944 6‐yr‐old trees after an extreme natural drought episode. We examined how individual damage was related to their size and the density and species identity of neighbouring trees. The two co‐occurring dominant tree species, Eucalyptus delegatensis and Eucalyptus regnans, were the most vulnerable to drought‐induced xylem cavitation and both species suffered significantly greater damage than neighbouring, subdominant species Pomaderris apetala and Acacia dealbata. While the two eucalypts had similar leaf P50 values, E. delegatensis suffered significantly greater damage, which was strongly related to the density of neighbouring P. apetala. Damage in E. regnans was less impacted by neighbouring plants and smaller trees of both eucalypts sustained significantly more damage than larger trees. Our findings demonstrate that natural drought damage is influenced by individual plant physiology as well as the composition, physiology and density of the surrounding stand.

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Understanding the factors controlling productivity is crucial for modelling current and predicting future forest growth and carbon sequestration potential. Although abiotic conditions exert a strong influence on productivity, it is becoming increasingly evident that plant community composition can dramatically influence ecosystem processes. However, much of our understanding of these processes in forests comes from correlative studies or field experiments in short-statured, short-lived vegetation. Here, we present the background, design and implementation success of the Australian Forest Evenness Experiment (AFEX), which was designed to investigate the influence of community composition on the processes that contribute to forest productivity. Eighty 25 × 25-m plots, covering 5 ha in a logged, burnt forest coupe in south-eastern Tasmania were sown with four tree species, namely Eucalyptus delegatensis R.T.Baker, E. regnans F.Muell., Acacia dealbata Link and Pomaderris apetala Labill., in varying combinations to provide a range of evenness levels with each of the four species as target dominant. Despite some differences between sown composition and realised composition 1year after sowing, a substantial range of community evenness and local neighbourhood densities and compositions existed in the experiment. Thus, this site provides a unique opportunity to determine the influence of local neighbourhood composition on a range of ecological processes.

Aims: Climate change will impact plant communities and populations but also individual plant performance. Most predictive models of community responses to climate change ignore individual-level biotic interactions despite their known importance for community diversity and functioning. Here, we consider plant fitness and diversity responses to climate change associated factors at three organisational levels: communities, populations and individual plants, to increase our understanding of how plant communities respond to climate change.