Capsicum annuum seeds were sown in a peat/vermiculite growth medium containing soil inoculum of effective Glomus macrocarpus cultures. Little VAM development was found after 1 month in the nursery, but when the seedlings were transplanted to a field fertilized with superphosphate, mycorrhizal infection was generally correlated with increasing inoculum levels. There were no significant differences in plant canopy growth but fruit yields were markedly higher.