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I'm not really sure what mulch is for, but my neighbors told me I should use it to keep my plants from drying out. So then does it save water by helping me to water less? They gave me some and I put it down, but I really haven't noticed much of a difference.

There seems to be an underlying assumption here, that mulch is just the semi-decorative stuff spread on open unplanted ground to suppress weeds and help keep it tidy in appearance. But that's just one type. Of the ones we use, there's coir (shredded coconut-husk) for that, but we also use compost and manure to suppress weeds, retain moisture and fertilize soil around plantings and beds, and pebbles or rocks in pots and beside natives to slow evaporation. My father swears by straw as insulation over winter, something we'll likely try this year. All of these are mulches, and so far as I know, none of them are too terribly obnoxous from an environmental standpoint.

I read something about a compressed coconut-husk cube to which you add water. It's supposed to absorb the water and turn into mulch, which seems like a pretty neat/environmentally conscious way to transport and use mulch.

We've been using the cubes for our coir mulch. My sole complaint, and it's only because I'm badly arthritic, is that the compressed cubes are very heavy for their size. As you'd expect, really. They fluff up very nicely when broken into a bin and soaked.

On your question, mulch can reduce a garden's water requirement by reducing evaporation. But if it's a small garden it will be a small effect. And whatever you do, don't mulch right up to the stem -- I see this all the time, and it encourages fungal diseases and pests, and can also result in a poor, shallow root system.

I am a mulch lover!! I use it when establishing flower beds, it keeps the weeds down and retains moisture so I don't need to water very often. Once beds are well established there is minimal need for mulch as healthy bushy plants deter weeds on their own. Mulch is a complex topic with numerous pros and cons for various applications. I only use shredded bark which will eventually degrade into the soil. Cocoa husks are very toxic for dogs so do your research before applying any sort of mulch in your environment.

I'm experimenting this year--What I have down for mulch is two layers of paper bags (I work at a grocery store, so that part was easy) followed by cotton-seed hulls. So far, the plants are happy and the weeds seem to be suppressed.

We use pine straw for mulch and there is plenty of it where we live. Here in the Southeastern US, there is no shortage of pine needles.