Competition for light has driven forest trees to grow exceedingly tall, but the lack of a single universal limit to tree height indicates multiple interacting environmental limitations. Because soil nutrient availability is determined by both nutrient concentrations and soil water, water and nutrient availabilities may interact in determining realised nutrient availability and consequently tree height. In SW Australia, which is characterised by nutrient impoverished soils that support some of the world's tallest forests, total [P] and water availability were independently correlated with tree height (r = 0.42 and 0.39, respectively). However, interactions between water availability and each of total [P], pH and [Mg] contributed to a multiple linear regression model of tree height (r = 0.72). A boosted regression tree model showed that maximum tree height was correlated with water availability (24%), followed by soil properties including total P (11%), Mg (10%) and total N (9%), amongst others, and that there was an interaction between water availability and total [P] in determining maximum tree height. These interactions indicated a trade-off between water and P availability in determining maximum tree height in SW Australia. This is enabled by a species assemblage capable of growing tall and surviving (some) disturbances. The mechanism for this trade-off is suggested to be through water enabling mass-flow and diffusive mobility of P, particularly of relatively mobile organic P, although water interactions with microbial activity could also play a role.