UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION

                          Washington, D. C. 20549


                                  FORM 8-K

                               CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934


      Date of report (Date of earliest event reported): March 30, 2006

                                ASHLAND INC.
           (Exact Name of Registrant as Specified in its Charter)

                                  Kentucky
               (State or Other Jurisdiction of Incorporation)

        1-32532                                             20-0865835
(Commission File Number)                                 (I.R.S. Employer
                                                        Identification No.)

50 E. RiverCenter Boulevard, Covington, Kentucky               41011
    (Address of Principal Executive Offices)                 (Zip Code)

P.O. Box 391, Covington,  Kentucky                           41012-0391
    (Mailing Address)                                        (Zip Code)

     Registrant's telephone number, including area code: (859) 815-3333

Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:

[ ]  Written  communications  pursuant to Rule 425 under the Securities Act
     (17 CFR 2230.425)
[ ]  Soliciting  material  pursuant to Rule  14a-12  under the Exchange Act
     (17 CFR 240.14a-12)
[ ]  Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the
     Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement  communications  pursuant to Rule 13e-4(c)  under the
     Exchange Act (17 CFR 240.13e-4(c))



Item 8.01. Other Events On March 30, 2006, Ashland Inc. announced that it has signed a definitive agreement to purchase the water treatment business of Degussa AG, branded under the Stockhausen name, in a transaction valued at approximately $144 million (120 million euros). Five manufacturing facilities located in Germany, China, Brazil, Russia and the United States are included in the transaction. The closing, which is anticipated to take place in May 2006, is conditional upon a number of standard closing conditions, including regulatory review. The proposed transaction is further described in the attached press release, which is attached hereto as Exhibit 99.1, and incorporated herein by this reference.

Item 9.01. Financial Statements and Exhibits (d) Exhibits 99.1 Press release dated March 30, 2006

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ASHLAND INC. ---------------------------------------------- (Registrant) Date: March 30, 2006 /s/ J. Marvin Quin ---------------------------------------------- Name: J. Marvin Quin Title: Senior Vice President and Chief Financial Officer

EXHIBIT INDEX 99.1 Press release dated March 30, 2006

                                                        EXHIBIT 99.1



{GRAPHIC OMITTED]    [GRAPHIC OMITTED]

News Release         Ashland Logo



                                            FOR FURTHER INFORMATION:
                                            Media Relations
                                            Jim Vitak
                                            (614) 790-3715
                                            jevitak@ashland.com


                                            FOR IMMEDIATE RELEASE:
                                            March 30, 2006


ASHLAND SIGNS AGREEMENT TO ACQUIRE
DEGUSSA WATER TREATMENT BUSINESS

COVINGTON,  Ky. - Ashland  Inc.  (NYSE:  ASH)  announced  today that it has
signed a definitive  agreement to purchase the water treatment  business of
Degussa AG, branded under the Stockhausen name, in a transaction  valued at
approximately   $144  million  (120  million  euros).   Five  manufacturing
facilities located in Germany,  China, Brazil, Russia and the United States
are  included in the  transaction.  The Degussa  water  treatment  business
posted 2005 sales of nearly $250 million.

     "This transaction  demonstrates Ashland's continuing strategy to build
shareholder  value by expanding  our  products,  services and  geographical
reach in market segments where we already  compete," said James J. O'Brien,
chairman and chief executive  officer of Ashland.  "Water  management is an
essential  and growing part of the world  economy,  and the addition of the
Degussa water  treatment  business to Ashland will help us  participate  in
that growth."

     "This  acquisition  expands  our  technology  base,  product  line and
service  levels  --  strengths  that  already  distinguish  us and  that we
continue  to build  upon," said Len Gelosa,  senior vice  president,  Water
Technologies,  Ashland Specialty  Chemical,  a division of Ashland Inc. "It
also helps us develop our presence in the important  BRIC nations  (Brazil,
Russia,  India and China)  where the  economic  future  offers  significant
potential for growth."

     The  closing,  which is  anticipated  to take  place in May  2006,  is
conditional  upon  a  number  of  standard  closing  conditions,  including
regulatory review.

                                  - more -


ASHLAND SIGNS AGREEMENT TO ACQUIRE DEGUSSA WATER TREATMENT BUSINESS p.2 Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht said, "Our Water Chemicals business is an ideal strategic complement to Ashland's portfolio. We have passed our business into good hands." Ashland Water Technologies, a business of Ashland Specialty Chemical, is a supplier of specialty products and consulting services to the manufacturing and institutional markets through its Drew Industrial business group and a leading supplier to the global marine industry through its Drew Marine business group. Drew Industrial provides industrial, commercial and institutional water treatments, wastewater treatment, pathogen control, paint and coating additives, pulp and paper processing and mining chemistries. Drew Marine provides boiler and cooling water treatments, fuel treatments, welding, refrigeration and sealing products; and fire fighting, safety and rescue products and services. Ashland Specialty Chemical, a division of Ashland Inc., is a leading, worldwide supplier of specialty chemicals serving industries including adhesives, automotive, composites, metal casting, merchant marine, paint, paper, plastics, watercraft and water treatment. Visit www.ashspec.com to learn more about these operations. Ashland Inc. (NYSE: ASH) is a Fortune 500 chemical and transportation construction company providing products, services and customer solutions throughout the world. To learn more about Ashland, visit www.ashland.com. FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, with respect to Ashland's operating performance. These estimates are based upon a number of assumptions, including those mentioned within this news release. Such estimates are also based upon internal forecasts and analyses of current and future market conditions and trends, management plans and strategies, weather, operating efficiencies and economic conditions, such as prices, supply and demand, cost of raw materials, and legal proceedings and claims (including environmental and asbestos matters). Although Ashland believes its expectations are based on reasonable assumptions, it cannot assure the expectations reflected herein will be achieved. This forward-looking information may prove to be inaccurate and actual results may differ significantly from those anticipated if one or more of the underlying assumptions or expectations proves to be inaccurate or is unrealized or if other unexpected conditions or events occur. Other factors and risks affecting Ashland are contained in Ashland's Form 10-K for the fiscal year ended Sept. 30, 2005. Ashland undertakes no obligation to subsequently update or revise the forward-looking statements made in this news release to reflect events or circumstances after the date of this release. - 0 -