Olive trees prefer to be planted in well-drained soil in a sunny area of the landscape. The olive tree is an evergreen that flourishes in hot dry areas, and as such, will not do well in wet, winter soil. The plant will need water every day, especially during the summer months throughout its first year. Once established, the olive tree is drought-tolerant. We recommend keeping your plant potted so that it can be brought indoors when temperatures drop below 30°F.