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): December 15, 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 230.425)

[ ]    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))


                                    -1-
<PAGE>


Item 1.02.  Termination of a Material Definitive Agreement

     On December 15, 2006,  Ashland Inc.  ("Ashland")  terminated its stock
trading plan with Credit Suisse  Securities (USA) LLC, amended and restated
on September 20, 2006,  and  effective on October 2, 2006 (the "Plan").  As
previously  disclosed,  substantially all of the estimated $1.23 billion in
after-tax  proceeds from the sale of Ashland Paving And Construction,  Inc.
(the  "APAC  Proceeds")  were to fund a $10.20 per share  special  dividend
(which was paid on October 25,  2006),  the  completion of an earlier share
repurchase  authorization,  and  an  authorization  to  repurchase  up to 7
million additional shares of Ashland common stock.

     As of December 15, 2006, $539 million of the APAC Proceeds was used to
repurchase  8,735,900  shares and $674  million was used to pay the special
dividend.  Also as of  December  15,  approximately  62,853,410  shares  of
Ashland common stock were outstanding.  The Plan was terminated because the
dollar value of the  repurchase  authorization  has been nearly  exhausted.
Ashland  intends  to  repurchase  shares  with  the  remainder  of the APAC
Proceeds  by  completing  Purchases  directed  under  the Plan  and  making
additional purchases not directed by a formal trading plan.



                                    -2-
<PAGE>


                                 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)


December 15, 2006                /s/ J. Marvin Quin
                                -------------------------------------------
                                J. Marvin Quin
                                Senior Vice President
                                and Chief Financial Officer


                                    -3-
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{"company-data": {"conformed-name": "ASHLAND INC.", "cik": "0001305014", "assigned-sic": "5160", "irs-number": "200865835", "state-of-incorporation": "KY", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32532", "film-number": "061280738"}, "business-address": {"street1": "50 EAST RIVERCENTER BLVD., 16TH FLOOR", "city": "COVINGTON", "state": "KY", "zip": "41012", "phone": "859-815-3483"}, "mail-address": {"street1": "50 EAST RIVERCENTER BLVD., 16TH FLOOR", "city": "COVINGTON", "state": "KY", "zip": "41012"}, "former-company": {"former-conformed-name": "New EXM Inc.", "date-changed": "20041004"}}
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): December 15, 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 230.425)

[ ]    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))

                                    -1-
Item 1.02.  Termination of a Material Definitive Agreement

     On December 15, 2006,  Ashland Inc.  ("Ashland")  terminated its stock
trading plan with Credit Suisse  Securities (USA) LLC, amended and restated
on September 20, 2006,  and  effective on October 2, 2006 (the "Plan").  As
previously  disclosed,  substantially all of the estimated $1.23 billion in
after-tax  proceeds from the sale of Ashland Paving And Construction,  Inc.
(the  "APAC  Proceeds")  were to fund a $10.20 per share  special  dividend
(which was paid on October 25,  2006),  the  completion of an earlier share
repurchase  authorization,  and  an  authorization  to  repurchase  up to 7
million additional shares of Ashland common stock.

     As of December 15, 2006, $539 million of the APAC Proceeds was used to
repurchase  8,735,900  shares and $674  million was used to pay the special
dividend.  Also as of  December  15,  approximately  62,853,410  shares  of
Ashland common stock were outstanding.  The Plan was terminated because the
dollar value of the  repurchase  authorization  has been nearly  exhausted.
Ashland  intends  to  repurchase  shares  with  the  remainder  of the APAC
Proceeds  by  completing  Purchases  directed  under  the Plan  and  making
additional purchases not directed by a formal trading plan.

                                    -2-
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)

December 15, 2006                /s/ J. Marvin Quin
                                -------------------------------------------
                                J. Marvin Quin
                                Senior Vice President
                                and Chief Financial Officer

                                    -3-