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): November 29, 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
------------------------

(1)  Securities  and  Exchange  Commission  (Commission)  Settlement  -  On
November 29, 2006,  the  Commission  approved a settlement  of a previously
disclosed  administrative  proceeding  with the  Commission  concluding  an
investigation   into  adjustments  that  reduced  Ashland's   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.  Pursuant to the  settlement,  Ashland agreed as
part  of a cease  and  desist  order,  without  admitting  or  denying  any
liability, not to violate certain provisions of the federal securities laws
and to establish or continue  various policies and procedures in connection
with the determination of its environmental reserves.

(2) Dow  Plastics  Supply  Agreement  with Ashland  Distribution  - Ashland
Distribution,  a division of Ashland Inc., will be advising  customers that
Dow  Chemical  Company  has  provided  notice of its  intent  to  terminate
Ashland's  supply  agreement  for  distribution  of Dow  plastics  in North
America,  effective March 1, 2007. The contract and the termination  notice
are further  described  in the press  release  which is attached  hereto as
Exhibit 99.1 and incorporated by reference herein.



                                    -2-
<PAGE>

Item 9.01.  Financial Statements and Exhibits
---------------------------------------------

(d)     Exhibits

99.1    Press release dated December 4, 2006

                                    -3-
<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: December 4, 2006           /s/ J. Marvin Quin
                                -------------------------------------------
                                 J. Marvin Quin
                                 Senior Vice President
                                 and Chief Financial Officer


                                    -4-
<PAGE>

                               EXHIBIT INDEX

99.1  Press release dated December 4, 2006

                                    -5-
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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": "061252845"}, "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): November 29, 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
------------------------

(1)  Securities  and  Exchange  Commission  (Commission)  Settlement  -  On
November 29, 2006,  the  Commission  approved a settlement  of a previously
disclosed  administrative  proceeding  with the  Commission  concluding  an
investigation   into  adjustments  that  reduced  Ashland's   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.  Pursuant to the  settlement,  Ashland agreed as
part  of a cease  and  desist  order,  without  admitting  or  denying  any
liability, not to violate certain provisions of the federal securities laws
and to establish or continue  various policies and procedures in connection
with the determination of its environmental reserves.

(2) Dow  Plastics  Supply  Agreement  with Ashland  Distribution  - Ashland
Distribution,  a division of Ashland Inc., will be advising  customers that
Dow  Chemical  Company  has  provided  notice of its  intent  to  terminate
Ashland's  supply  agreement  for  distribution  of Dow  plastics  in North
America,  effective March 1, 2007. The contract and the termination  notice
are further  described  in the press  release  which is attached  hereto as
Exhibit 99.1 and incorporated by reference herein.

                                    -2-
Item 9.01.  Financial Statements and Exhibits
---------------------------------------------

(d)     Exhibits

99.1    Press release dated December 4, 2006

                                    -3-
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: December 4, 2006           /s/ J. Marvin Quin
                                -------------------------------------------
                                 J. Marvin Quin
                                 Senior Vice President
                                 and Chief Financial Officer

                                    -4-
EXHIBIT INDEX

99.1  Press release dated December 4, 2006

                                    -5-