Leucaena [Leucaena leucocephala Lam. de Wit ssp. glabrata (Rose) Zarate] mixed with Rhodes grass (Chloris gayana Kunth), is widely grown in tropical northern Australia in a hedgerow silvopastoral system which is productive, profitable and sustainable for beef cattle production. However, there is poor understanding concerning the most appropriate tree densities and planting configurations for leucaena and grass forage systems. Limited studies have focused on above-ground interactions between the species with even fewer on below-ground competition. Therefore, the main objective of this thesis was to investigate above-and below-ground competition, with emphasis on water use of both the leucaena and grass at a range of leucaena densities. Additional objectives were to determine (a) the effect of plant density on above-ground interactions between the species; (b) spatial and temporal water use of both species; (c) rooting patterns and deep drainage in a commercial leucaena-grass pasture; and (d) the effect of defoliation on water use of leucaena.The following experiments were conducted to address these objectives, firstly a field monitoring experiment in a commercial leucaena-grass pasture system at north-east of Injune, Central Queensland; secondly, two experiments in a controlled glasshouse environment at the University of Queensland, St. Lucia Campus Brisbane; and thirdly, three field experiments at the University of Queensland, Gatton Campus, Gatton Australia.The detailed monitoring analysis, using high-technology soil water moisture sensors, provided water use information and highlighted that there was minimal spatial and temporal complementarity of water use between the species. This was contrary to the general agroforestry hypothesis that trees acquired water from different soil strata when grown in association with grass. A high level of competition for water was evident as most of the water extraction occurred in the top 1.5 m of the soil profile. In the second year, root activity and water extraction became shallower probably associated with overgrazing and severe pruning. Another important outcome of this experiment was the low level of deep drainage to 4 m.The effect of leucaena plant density on above and below-ground interactions was then investigated using a Nelder fan design established at Gatton research farm from