Seedlings of 95 greenhouse-grown interior Douglas-fir half-sibling families originating from four breeding zones were subject to overwatering and periodic underwatering and compared to an optimally watered control (15 per family = 1425 seedlings total). Averaged over all trees, annual height was reduced by 4% and 11% compared to controls for overwatering and periodic underwatering, respectively. Family overwatered seedling height was 135–75%, and underwatered height was 100–75% of their respective control heights. Shorter families under stress grew like their control compared to taller families, but this was reversed in taller families when the watering conditions were ideal. A survival analysis indicated that after 30–50 days without water, family survival varied from 25% to 90%, and most trees died after 60 days. The breeding zone had little effect on the tolerance to suboptimal water or survival during complete water withdrawal and did not interact with watering treatments. Family traits for tolerance to overwatering favoured root biomass, traits for underwatering favoured reduced stem biomass, especially in ratio to roots, and traits for survival favoured belowground biomass over aboveground biomass. No tradeoffs between tolerance to over- and underwatering were found. Some families did well in all three conditions and some in one or the other. The study results suggest that variation in family growth and survival to suboptimal watering partly relate to root and stem biomass partitioning in the interior Douglas-fir population of British Columbia.