How plastic is hydraulic anatomy with growth temperature, and how does this relate to photosynthesis? These interrelationships were studied in subantarctic Poa foliosa Hook. f. and alpine Poa hothamensis Vickery grown under 7/4°C and 12/9°C day/night temperatures, reflecting summer temperatures in their respective habitats. Conduit radii were smaller in P. foliosa than in P. hothamensis, consistent with greater avoidance of freeze/thaw-induced embolism. Despite its origins in an environment with relatively little temperature variation, P. foliosa exhibited greater plasticity in hydraulic anatomy than P. hothamensis, increasing the size and density of conduits when grown under the warmer temperature regime. Both species had similar anatomical capacities for water transport when grown at 12/9°C, but stomatal conductance was lower in P. foliosa than P. hothamensis, suggesting hydraulic limitations not explained by leaf vascular anatomy. However, greater photosynthetic capacity and foliar nitrogen contents enabled P. foliosa to achieve the same assimilation rate as P. hothamensis under the 12/9°C growth conditions. Our results showed that nitrogen plays a central role in maintaining assimilation rates when constrained either by enzymatic activity at low temperatures or by hydraulic limitations at high temperatures and evaporative demands. Interspecific differences in nitrogen and water use may influence how subantarctic and alpine vegetation responds to climate warming.