Shortened periods of inundation due to water management have led to the encroachment and expansion of Carolina willow (Salix caroliniana) in sawgrass (Cladium jamaicense) marsh communities. Morphologic and physiologic differences between sawgrass and willow have potential consequences for microhabitat conditions and ecosystem function such as a reduction in temperatures and light availability and changes in primary productivity. Since it is a woody shrub, willow is often assumed to exhibit higher rates of transpiration than non woody plants, which in turn can affect photosynthesis and carbon exchange and ultimately wetland water management. In this study willow was found to have higher rates of stomatal conductance (gs) and photosynthesis (Anet) than sawgrass. However, sawgrass had greater intrinsic water use efficiency (WUE) than willow. This suggests that willow is capable of greater gas exchange and carbon assimilation than sawgrass but requires more water. Understanding the implications of willow expansion will improve landscape models of wetland water and carbon exchange and inform water management decisions.