This paper critically appraises the limitations of the liquid-limit wa
ter content of clayey soils determined conventionally either by percus
sion cup or by the cone penetration method. It is shown that the conve
ntional liquid limit and plastic limit are arbitrary, strength-based w
ater contents and that they cannot represent the plasticity limits, an
d that the state of the soil-water system at the conventional liquid l
imit does not correspond to a stress-free reference state. The present
investigation identifies three characteristic limiting water contents
for a soil-water system which have well-defined, unique mechanisms co
ntrolling them, namely the free swell limit, settling limit and shrink
age limit. Simple procedures for the determination of the free swell l
imit and settling limit of natural soils are presented. The settling l
imit is shown to be the 'real liquid limit' of any clayey soil. With a
number of experimental illustrations, it is clearly shown that the se
ttling limit represents the maximum water-holding capacity of clayey s
oils and that it corresponds to the stress-free reference state.