Aquatic hyphomycetes dominate leaf decomposition in streams, and their biomass is an important component in the diet of leaf-eating invertebrates. After 2 weeks of exposure in a first-order stream, maple leaf disks had low levels of fungal biomass and species diversity. Spore production by aquatic hyphomycetes also was low. Subsets of these disks were left in the stream for another 3 weeks or incubated in defined mineral solutions with one of three levels of nitrate and phosphate. Stream disks lost mass, increased ergosterol levels and spore production, and were colonized by additional fungal species. External N and P significantly stimulated mass loss, ergosterol accumulation, and spore production of laboratory disks. On disks incubated without added N and P, ergosterol levels declined while conidium production continued, suggesting conversion of existing hyphal biomass to propagules. In all other treatments, approximately equal amounts of newly synthesized biomass were invested in hyphae and conidia. Net yield (fungal biomass per leaf mass lost) varied between 1% (in the laboratory, without added N or P) and 31% (decay in stream). In most treatments, the three aquatic hyphomycete species that dominated spore production during the first 2 weeks in the stream also produced the largest numbers of conidia in the following 3 weeks. Principal-component analysis suggested two divergent trends from the initial fungal community established after 2 weeks in the stream. One culminated in the community of the second phase of stream exposure, and the other culminated in the laboratory treatment with the highest levels of N and P. The results suggest that fungal production in streams, and, by extension, production of invertebrates and higher tropic levels, is stimulated by inorganic N and P.In a pioneering study of leaf decay in streams, fungi were shown to be more active than bacteria during the early stages, and fungal growth was often accompanied by an absolute increase in the nitrogen content of the substrate (21). These results imply that fungi acquire nitrogen from water flowing over the leaf surface. Increased nitrogen levels of decaying leaves make them more palatable and nutritious to stream invertebrates; fungi therefore act as an intermediate trophic level between autumn-shed leaves (the dominant source of food in most small streams) and leaf-eating invertebrates (4,6,8,34,41).The fungi dominating leaf decomposition in streams are aquatic hyphomycetes, a phylogenetically heterogenous group (4, 40). When leaves are exposed in streams, fungal biomass (estimated by ergosterol levels) rapidly increases to a peak of up to 17% of total detrital mass (16,19), and it may remain at this level for some time before gradually declining. In addition to increasing their biomass on the leaves, the fungi also release large numbers of conidia into the stream. Conidium production often is estimated by aerating stream-exposed leaves in the laboratory and collecting newly formed spores on filters (3). Up to 8 conidia day Ϫ1 g of det...