2006 Annual Report 4d.Progress report. This report serves to document research conducted under a Specific Cooperative Agreement between ARS and Willoway Nurseries, Avon, Ohio. Additional details of research can be found in the report for the parent CRIS 3607-21620-006-00D Biological, Microclimate, and Transport Processes Affecting Pest Control Application Technology. The research of this project is directed towards ARS National Program 305, Crop Production. In nursery production, knowledge of water quality and quantity is needed to improve application efficiency and efficacy due to irrigation and rainfall following pesticide spray application as it relates to potential for soil and groundwater contamination. In cooperation with Willoway Nurseries, Inc., Avon, Ohio, a multi-purpose experimental pot-in-pot production system was established and expanded in a plot in north Ohio. Experiments were conducted to determine water drainage and nutrient leachate for different moisture levels with various nutrition application treatments. Research findings demonstrated that applying the top dressed, slow release, granular fertilizer to trees at the beginning of the growing season might be enough to support healthy growth for redbuds and pears for the first year. Application of additional nutrients to these two species during the first growing season might not be necessary. The system continuously monitored the substrate temperature and moisture content during four seasons of a year, and provided a technical tool to evaluate the potentials of winter injury or summer heat damage to roots for pot-in-pot nursery production.