Twenty-four Hampshire X Suffolk wether lambs (40 kg) were used in a 2 X 2 factorial arrangement of treatments to study the influence of water restriction and high levels of dietary K on nutrient utilization. Lambs were offered either a normal K diet (1.86% K) or a high K diet (3.66% K). Additionally, the lambs were offered either a normal quantity of water (previously determined voluntary intake of lambs fed normal K levels) or were restricted to a water intake 80% of normal. Each lamb received 800 g/d of a fescue hay-corn diet (77.5% fescue hay) with an additional 20 g of KCl offered to lambs on high K treatments. The experiment consisted of 14 d of adjustment and 7 d of total collection with blood and ruminal parameters measured on the last day of collection. Both acid detergent fiber digestibility and N balance were reduced (P less than .05) by high K intake. Urinary Mg excretion tended (P greater than .05) to be decreased by water restriction. Plasma Mg concentrations at 2 h post-feeding (PF) tended (P greater than .05) to be reduced by a high K intake at a normal level of water consumption but increased at high K intake when water intake was restricted. A similar pattern was observed for plasma K concentrations. Although high K intake resulted in elevated (P less than .05) ruminal K concentrations both at 2 and 6 h PF, ruminal concentrations of ammonia-N and volatile fatty acids were not affected (P greater than .05) by treatment. These data suggest that nutrient utilization in both the digestive tract and tissues is altered by level of K and modest water restriction.