We conduct co-integration tests of southern timber regions using alternative tests and specifications, and data from 13 pine sawtimber and 11 pulpwood markets. We find that southern timber regions are not fully integrated. Our results imply that a single market does not exist across the entire U. S. South. Instead, these regions may form a few contiguous market segments. The main reason that some timber regions fail to track others closely lies in the nature of the good - timber, a bulky commodity with low value. We believe that this finding has significant implications for timber market modeling as well as forest policy analysis based on timber market models.