This mushroom naturally grows, often prolifically, along the northern Oregon Coast near Astoria, Oregon, favoring the beachland interface. Psilocybe azurescens has a strong affection for dune grasses, especially Ammophila maritima, with which it is closely associated. Generating an extensive, dense and tenacious mycelial mat, P. azurescens causes the whitening of wood. Fruitings begin in late September and continue well after the first frost, often fruiting into late December and early January. An adaptive species, outdoor beds have been established with ease in California, New Mexico, Wisconsin, Vermont, and Ohio.

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