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A fungous decay causing seasoned lumber to become brittle and crumble to powder. Dry rot needs extended periods of moisture (fresh water), oxygen, and dry rot spores to thrive.
This term is loosely applied to any dry, crumbly rot but especially to that which, when in an advanced stage, permits the wood to be crushed easily to a dry powder. The term in actually a misnomer for any decay, since all fungi require over 20% moisture to grow.
A term common to wooden boat design and construction.