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): September 14, 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 1.01. Entry into a Material Definitive Agreement

     Today, Ashland Inc. ("Ashland") entered into a stock trading plan with
Credit  Suisse  Securities  (USA) LLC (the "Plan")  pursuant to Rule 10b5-1
under the Securities  Exchange Act of 1934. Under the Plan, up to 6 million
of the 7 million shares  authorized for repurchase under a stock repurchase
program  approved by Ashland's  board of directors  today and  described in
greater detail in Item 8.01 below may be repurchased.  The Plan will become
effective on September 25, 2006,  and end on or before March 31, 2007.  The
Plan is  intended  to permit  Ashland  to  repurchase  stock  when it might
otherwise  be  prohibited  from  trading  its  own  stock.   The  foregoing
description of the Plan is not complete and is qualified in its entirety by
reference to the complete  Plan,  which is attached  hereto as Exhibit 10.1
and is incorporated by reference herein.

Item 8.01. Other Items

     Today,  Ashland's board of directors  declared a special cash dividend
of  $10.20  per  share  that  will be  payable  on  October  25,  2006,  to
shareholders  of record as of October  10,  2006.  The  Ashland  board also
authorized  the  repurchase of up to an additional 7 million  shares of the
company's common stock, to be made from time to time in the open market.

     Substantially  all of the after-tax  proceeds from the sale of Ashland
Paving And Construction, Inc. were used to fund the completion of the prior
repurchase  authorization,  and  will  be used to  fund  the  additional 7-
million-share  repurchase  authorization  and the  special  cash  dividend.
After-tax  proceeds,  after  adjustment for changes in working  capital and
certain other accounts, are estimated to total $1.28 billion.

     Because of the  magnitude of the special cash  dividend,  the New York
Stock Exchange has determined that the ex-dividend date will be October 26,
2006,  the  business  day  following  the payable date for the special cash
dividend.  Ashland  shareholders of record on the October 10, 2006,  record
date who subsequently sell their shares of common stock through the payable
date for the special  dividend  will also be selling their right to receive
such  dividend.  The  special  cash  dividend  is expected to be taxable to
shareholders  at the dividend tax rate and will not be  considered a return
of capital.  Shareholders  are  encouraged to consult with their  financial
advisors regarding the circumstances of their individual tax situation.

     The special cash dividend and the share repurchase  authorization  are
described in greater detail in the press release attached hereto as Exhibit
99.1 and incorporated by reference herein.

Item 9.01.  Financial Statements and Exhibits

  (d)   Exhibits

  10.1  Stock  Trading Plan with Credit Suisse  Securities  (USA) LLC dated
        September 14, 2006.

  99.1  Press Release dated September 14, 2006.

                                    -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)


September 14, 2006               /s/ J. Marvin Quin
                                -------------------------------------------
                                J. Marvin Quin
                                Senior Vice President
                                and Chief Financial Officer


                                    -3-

<PAGE>


                               EXHIBIT INDEX

10.1   Stock  Trading Plan with Credit  Suisse  Securities  (USA) LLC dated
       September 14, 2006.

99.1   Press Release dated September 14, 2006.


                                    -4-
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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": "061090092"}, "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): September 14, 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 1.01. Entry into a Material Definitive Agreement

     Today, Ashland Inc. ("Ashland") entered into a stock trading plan with
Credit  Suisse  Securities  (USA) LLC (the "Plan")  pursuant to Rule 10b5-1
under the Securities  Exchange Act of 1934. Under the Plan, up to 6 million
of the 7 million shares  authorized for repurchase under a stock repurchase
program  approved by Ashland's  board of directors  today and  described in
greater detail in Item 8.01 below may be repurchased.  The Plan will become
effective on September 25, 2006,  and end on or before March 31, 2007.  The
Plan is  intended  to permit  Ashland  to  repurchase  stock  when it might
otherwise  be  prohibited  from  trading  its  own  stock.   The  foregoing
description of the Plan is not complete and is qualified in its entirety by
reference to the complete  Plan,  which is attached  hereto as Exhibit 10.1
and is incorporated by reference herein.

Item 8.01. Other Items

     Today,  Ashland's board of directors  declared a special cash dividend
of  $10.20  per  share  that  will be  payable  on  October  25,  2006,  to
shareholders  of record as of October  10,  2006.  The  Ashland  board also
authorized  the  repurchase of up to an additional 7 million  shares of the
company's common stock, to be made from time to time in the open market.

     Substantially  all of the after-tax  proceeds from the sale of Ashland
Paving And Construction, Inc. were used to fund the completion of the prior
repurchase  authorization,  and  will  be used to  fund  the  additional 7-
million-share  repurchase  authorization  and the  special  cash  dividend.
After-tax  proceeds,  after  adjustment for changes in working  capital and
certain other accounts, are estimated to total $1.28 billion.

     Because of the  magnitude of the special cash  dividend,  the New York
Stock Exchange has determined that the ex-dividend date will be October 26,
2006,  the  business  day  following  the payable date for the special cash
dividend.  Ashland  shareholders of record on the October 10, 2006,  record
date who subsequently sell their shares of common stock through the payable
date for the special  dividend  will also be selling their right to receive
such  dividend.  The  special  cash  dividend  is expected to be taxable to
shareholders  at the dividend tax rate and will not be  considered a return
of capital.  Shareholders  are  encouraged to consult with their  financial
advisors regarding the circumstances of their individual tax situation.

     The special cash dividend and the share repurchase  authorization  are
described in greater detail in the press release attached hereto as Exhibit
99.1 and incorporated by reference herein.

Item 9.01.  Financial Statements and Exhibits

  (d)   Exhibits

  10.1  Stock  Trading Plan with Credit Suisse  Securities  (USA) LLC dated
        September 14, 2006.

  99.1  Press Release dated September 14, 2006.

                                    -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)

September 14, 2006               /s/ J. Marvin Quin
                                -------------------------------------------
                                J. Marvin Quin
                                Senior Vice President
                                and Chief Financial Officer

                                    -3-
EXHIBIT INDEX

10.1   Stock  Trading Plan with Credit  Suisse  Securities  (USA) LLC dated
       September 14, 2006.

99.1   Press Release dated September 14, 2006.

                                    -4-