*Recent research suggests that increasing conduit tapering progressively reduces hydraulic constraints caused by tree height. Here, we tested this hypothesis using the tallest hardwood species, Eucalyptus regnans. *Vertical profiles of conduit dimensions and vessel density were measured for three mature trees of height 47, 51 and 63 m. *Mean hydraulic diameter (Dh) increased rapidly from the tree apex to the point of crown insertion, with the greatest degree of tapering yet reported (b > 0.33). Conduit tapering was such that most of the total resistance was found close to the apex (82-93% within the first 1 m of stem) and the path length effect was reduced by a factor of 2000. Vessel density (VD) declined from the apex to the base of each tree, with scaling parameters being similar for all trees (a = 4.6; b = -0.5). *Eucalyptus regnans has evolved a novel xylem design that ensures a high hydraulic efficiency. This feature enables the species to grow quickly to heights of 50-60 m, beyond the maximum height of most other hardwood trees.