In dilute aqueous solution, tert-butyl alcohol (TBA) tends to aggregate but trimethylamine-N-oxide ( TMAO) does not. Given that both molecules have very similar geometry with hydrophobic and hydrophilic groups, it is interesting to ask why they behave so differently in aqueous solution. To explore this question, we use molecular dynamics simulations to study two models representing TBA and TMAO that differ essentially only in their electrostatic properties. It is shown that this difference is sufficient to give the different solution behavior. Furthermore, the principal difference identified is that the hydrophilic group of TMAO ( the oxygen) interacts on average much more strongly with water than the corresponding group ( the hydroxyl) of TBA. A hydrogen-bond analysis shows that water-TBA and water-TMAO hydrogen bonds are similar in number, but that the hydrogen-bond energy is much more negative for water-TMAO. In all likelihood, this accounts for the different behavior in dilute aqueous solution.