Although structural adhesives are becoming widespread in numerous applications, one important limitation al present is the long term behaviour of bonded assemblies under conditions of high humidity, especially at elevated temperatures. This study presents a comparison between bulk properties of a structural epoxy resin and its behaviour in a torsional joint consisting of a hollowed-out cylinder bonded to a plate-both substrates being in stainless steel. Exposure to ca. 100% relative humidity at 70 degrees C leads to modification of the bulk properties of the polymer, notably reduction of its elastic modulus. Although this may explain some differences in behaviour of the torsional joint, premature failure is attributed to weaknesses in the interphase zone. Auger Electron Spectroscopy (AES) has been employed to investigate both unbonded steel surfaces and fracture zones. Although prolonged exposure to water leads to a more extensive degree of (apparently) adhesive failure at the interface polymer/metal, AES has shown the presence of non-negligible quantities of carbon, attributed to residual polymer. Failure would seem to occur, at least partly, in a weak interphase of the polymer, near, but not at, the interface. Various possible causes are evoked. For dry failure, residual polymer may be due to the topography of the metal surface and/or local modification of the adhesive during cure. In the case of aged joints, in addition there are potential effects due to swelling and differential stresses, secondary bond failure and molecular chain scission within the polymer, all provoked by the presence of water.