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Over-watering of plants can cause reduction of oxygen reaching plant roots. If this continues for too long it can be damaging or fatal to the plant.
Over-watering plants can cause wilting and yellowing of plants. House plants are particularly susceptible to over-watering because they are often planted in sealed pots where water is held and will cover roots. If the roots of the plants are sitting in saturated soil for long periods they may suffer from lack of oxygen, consequently the roots are unable to take up water and nutrients, the plants yellow and wilt.
See also Wilting of Indoor Houseplants
House Plants
Garden Plants