Small isolated wetlands in the southern Appalachian mountain region contain a disproportionate amount of the region's rare and uncommon herbaceous species. Many of these herbaceous communities may be threatened by invading trees and shrubs. We investigated changes in vegetative communities between 1994 and 2001 and the impact of woody encroachment upon herbaceous wetland communities in a southern Appalachian wetland complex in western North Carolina. We conducted a quantitative investigation of herbaceous, shrub and tree vegetation in forested and unforested fen and floodplain wetland sites. Additionally, soil chemistry, water level and precipitation data were collected. We found that woody encroachment was the strongest predictor of diminished herbaceous wetland communities, while water levels had the strongest positive relationship with herbaceous coverage.