The distribution of the soil fungi and the edaphic properties of the iron‐ore tailings along the eastern coast of Tolo Harbour, Hong Kong were studied. There was a phenomena of fungal succession according to the different ages of the tailing‐deposits. There was a gradual decline in the number of fungal species and the abundance of mycelia related to depth and the distance towards the seashore. The occurrence of the fungi was found to be governed by some of the edaphic properties tested, such as texture, content of organic carbon, pH, etc. The content of the metals seemed to play a minor role. In view of the lack of the basic nutrients in the tailings, it is suggested that sewage sludge be applied for stimulating the decomposition of organic matter and the subsequent release of nutrients will be available to higher plants.