Comparison of bottom‐water chemistry in the marine‐limnic habitat gradient shows greater phosphorus availability in marine waters, primarily because of enhanced iron sequestration by sulfide. In the oxidative hydrolysis of iron and the concomitant precipitation of phosphate, a minimum of two iron atoms are needed to precipitate one phosphate molecule (Fe : P = 2). However, dissolved Fe : P < 2 predominates in anoxic marine waters, therefore leaving some phosphate in solution after oxygenation because of a shortage of dissolved iron for phosphate coprecipitation by iron oxyhydroxide. In contrast, anoxic bottom waters in most freshwater lakes show Fe : P > 2, allowing almost complete phosphate removal on oxygenation. This difference is a consequence of the high sulfate content of sea salt, and a main reason why nitrogen normally limits net primary production in temperate coastal waters, in contrast to the predominant phosphorus limitation of near‐neutral lakes.