While the effects of habitat size and isolation have been successfully studied for macro-organisms, there is currently debate about their relative importance in explaining patterns of microbial species richness. In this study, we examine the species richness of a dominant group of eukaryotic soil microbes, ectomycorrhizal fungi, on 'tree islands' of constant age and host composition that range in size from < 10 to > 10,000 m(2). Our results show that ectomycorrhizal species richness is significantly reduced on smaller and more isolated tree islands, and the species-area slope that we observe (0.20-0.23) is similar to average slopes reported for macro-organisms. Additionally, species' occurrence patterns across tree islands and investment trends in fungal fruit bodies suggest that a trade-off between competition and dispersal could play an important role in structuring ectomycorrhizal assemblages.