The mechanical strength of sandy soils under radiata pine plantations was measured with a penetrometer. Resistance to penetration was largely independent of water content in the range sampled, and was directly related to the bulk density of the soil. Soil strength at constant bulk density increased with depth owing to increase in overburden pressure and to a decrease in soil organic matter. Soil under native scrub was consistently less compact than that from adjacent radiata pine plantations on the same soil type. Soil from pasture was usually more compact in the surface 20 cm of soil than that from pine plantations, but was less compact at depth. Soil from second rotation plantations was more compact than soil on some first rotation sites, but on other sites no differences could be established. Radiata pine roots preferentially penetrated areas of lower soil strength. Root penetration was severely restricted above a critical penetration resistance of about 3000 kPa. Saturated soils were highly compacted even by light loads in a laboratory consolidometer compared to unsaturated soil. In the unsaturated condition compaction was greatest under heavy loads on soils at about 1% organic matter. Causes of the observed compaction in the field are discussed and remedial measures are suggested. Soil compaction reduced porosity but had little effect on water storage capacity. Increased organic matter at constant bulk density also reduced porosity, but greatly increased water storage capacity and unsaturated hydraulic conductivity. The importance of organic matter in maintaining a favourable structure in sandy soils and its relation to maintenance of site productivity is discussed.