Water stress and restricted root volume pose serious constraints to the successful establishment and maintenance of urban trees, especially in planters, median strips, and other confined spaces. This article describes factors influencing growth of plants in containers, summarizes major problems involved in growing plants in a restricted root volume, and compares the effects of water stress and root restriction on the morphology and physiology of plants. The importance of various stress interactions on plant growth and development in the urban environment is also discussed. Recommendations are given for possible genetic, cultural, and physiological approaches for enhancing plant growth in restricted root volumes and ameliorating the effects of environmental stress and for future research needs.