Unlike mulberry (Morus alba, M.a.), paper mulberry (Broussonetia papyrifera, B.p.) can acclimate to Karst soil and incline to alien invasion. The photosynthetic parameters, diurnal changes of carbonic anhydrase, and chlorophyll fluorescence induction, and water potential were measured on sunny days (SD) and cloudy days (CD). Photosynthetic midday depression occurred in B.p. but not in M.a. The irradiance-and CO 2 -saturated photosynthetic rates of B.p. were significantly higher than those of M.a. There was no significant difference in water use efficiency between the two species on a SD. The maximum fluorescence, maximum quantum yield, photochemical quenching, and relative electron transport rate in the leaves of B.p. were much higher than those in M.a. The activity of carbonic anhydrase (CA) of B.p., on either an SD or a CD, was much greater than that of M.a. Higher transpiration rate (E) and net photosynthetic rate (P N ) of B.p. resulted in the lack of water in mesophyll cells. Although a higher CA activity of B.p. supplied both water and CO 2 for the photosynthesis of mesophyll cells, water in mesophyll cells was the factor limiting photosynthesis, and the intercellular CO 2 concentration of B.p. was high and stable.Additional key words: carbonic anhydrase; chlorophyll a fluorescence; mulberry; photochemical and non-photochemical quenching; species differences; stomatal conductance; transpiration rate; water potential.--Paper mulberry (Broussonetia papyrifera (L.)Vent.; B.p.) and mulberry (Morus alba L.; M.a.), perennial tree species belonging to Moraceae, are characterized by higher growth rate and greater adaptability to adverse environments than other species in this family (Zhang et al. 1998. They have been cultivated extensively in East, Central, and South Asia for papermaking, silk and timber production, and medical materials (Qin et al. 1999, Ouyang andChen 2003).Many investigations have addressed such physiological aspects as changes of peroxidase, esterase isozyme activities, and endogenous indole-3-acetic acid during cambial activity, the regeneration from leaf mesophyll protoplasts, and the accumulation of dry matter of each organ and various parts in paper mulberry (Oka and Ohyama 1985, Cui et al. 1995a,b, 1999, Dai 1995. Karst areas often suffer from water stress because of the unique geo-environment (Zhou et al. 2003). Therefore, drought tolerance is vital to the plants in the Karst area. Recent studies have also shown that this plant species, which is native to East Asia, has become an invader on several continents and in more than dozen countries (Ghersa et al. 2002, Morgan andOverholt 2005).Certain physiological changes of mulberry in response to water stress, high temperature, and toxic effects of heavy metals have been studied (