Tree-on-tree competitive interactions may be more important in affecting the distribution of the tree components of savannas than inter-specific competition with grasses. The presence of intraspecific competition is expected to negatively affect inter-tree spacing, individual size distributions and plant physiology as well as survival/mortality. In this field removal experiment on Acacia mellifera, one of South Africa’s most common encroachers on nutrient-poor soils, the growth, water relations and mortalities of shrubs where all neighbouring woody competitors were removed (target) were monitored three times during each of three growing seasons. After 3 years, the nitrogen and carbon isotopic ratios of the study plants were analysed. Target shrubs benefitted from removal of neighbours, resulting in greater growth, less water stress, a relatively small degree of canopy dieback and reduced reliance on N2 fixation. Target shrubs grew by 25 ± 4% in height relative to 7 ± 4% for controls, with the targets suffering a maximum of <15% canopy dieback compared to up to 60% in the controls. Severe environmental stress is known to affect neighbour interactions among shrubs and competition may constrain shrub sizes and avoid density-dependent mortality. In contrast, release from competition in our study may have allowed greater growth of target plants, increasing their total evapo-transpirational leaf surface areas and leaving them vulnerable to drought and water stress. Intratree competition on shallow nutrient-poor soils in savannas may thus aid the persistence of bush encroachment by regulating the sizes of individual shrubs below the threshold of drought vulnerability. Keywords: Acacia mellifera, bush encroachment, mortality, near-neighbour removal, water potential.