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): APRIL 25, 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 8.01.  Other Events


     On April 25, 2006, Ashland Inc.  ("Ashland") was notified by the staff
of the Securities and Exchange Commission (the "Commission") of the staff's
intent to seek  authorization  from the Commission to pursue a civil action
against  Ashland  relating to adjustments  which reduced its  environmental
remediation  reserves for certain sites for the fiscal years 1999 and 2000.
These  adjustments to environmental  reserves totaled $12.2 million in 1999
and $12.6  million  in 2000.  The staff  advised  that it  intends  to seek
injunctive  and/or  administrative  relief against Ashland and that it will
not recommend any fines,  penalties or restatements from Ashland nor allege
any  intentional  misconduct  by Ashland.  Ashland  intends to file a Wells
submission  and  will  vigorously  oppose  the  staff's  request  that  the
Commission authorize a civil action against Ashland.



     Ashland  anticipates that the staff will also seek  authorization from
the Commission to pursue similar, perhaps more extensive,  relief against a
current   employee  who  was   responsible   for   establishing   Ashland's
environmental reserves during 1999 and 2000.


                                    -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)



Date:  April 25, 2006                  /s/ David L. Hausrath
                                      --------------------------------------
                                      Name:    David L. Hausrath
                                      Title:   Senior Vice President,
                                               General Counsel and Secretary
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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": "06779349"}, "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): APRIL 25, 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 8.01.  Other Events

     On April 25, 2006, Ashland Inc.  ("Ashland") was notified by the staff
of the Securities and Exchange Commission (the "Commission") of the staff's
intent to seek  authorization  from the Commission to pursue a civil action
against  Ashland  relating to adjustments  which reduced its  environmental
remediation  reserves for certain sites for the fiscal years 1999 and 2000.
These  adjustments to environmental  reserves totaled $12.2 million in 1999
and $12.6  million  in 2000.  The staff  advised  that it  intends  to seek
injunctive  and/or  administrative  relief against Ashland and that it will
not recommend any fines,  penalties or restatements from Ashland nor allege
any  intentional  misconduct  by Ashland.  Ashland  intends to file a Wells
submission  and  will  vigorously  oppose  the  staff's  request  that  the
Commission authorize a civil action against Ashland.

     Ashland  anticipates that the staff will also seek  authorization from
the Commission to pursue similar, perhaps more extensive,  relief against a
current   employee  who  was   responsible   for   establishing   Ashland's
environmental reserves during 1999 and 2000.

                                    -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)

Date:  April 25, 2006                  /s/ David L. Hausrath
                                      --------------------------------------
                                      Name:    David L. Hausrath
                                      Title:   Senior Vice President,
                                               General Counsel and Secretary