This study examined the growth responses of exotic annuals and native shrubs to elevated N levels to test the hypothesis that increased N availability favors nitrophilous annuals over the slower-growing shrubs. The vegetation structure of the coastal sage scrub ecosystems in southern California is shifting from shrubland to annual grasslands. Over the last 30 years large tracts of wildlands, particularly those adjacent to urban centers, have lost significant native shrub cover, which has been replaced by exotic annuals native to the Mediterranean Basin. During this same time, air pollution has led to increased terrestrial eutrophication by atmospheric deposition. Changes in vegetation are often the result of changes in resource availability. The results of our experiments showed the three native shrubs tested to be more nitrophilous than the three annuals tested, which contrasts with most models of perennial species' adaptation to stressful environments. Under greenhouse conditions the annual grasses exhibited yield depression at the highest N treatments of 80 mu g g(-1) in soil. The three shrub species evaluated continued to increase shoot biomass at 80 mu g g(-1) N in soil. The grasses also exhibited increased tissue N concentrations with increased soil N in contrast with the shrubs where there was little difference in tissue N concentrations with increasing availability. Although the differential yield responses to elevated N do not explain the success of the annual vegetation in replacing shrubs, the inability of the shrubs to regulate growth under elevated N levels may explain the poor survival of mature individuals.