 <p>Looks like there is no solution to this problem. The bug is aknowleged by microsoft, but its still not fixed in SSRS2008.</p> <p>From the KB article (<a href="http://support.microsoft.com/kb/938943" rel="nofollow noreferrer">http://support.microsoft.com/kb/938943</a>)</p> <blockquote> <p>This behavior occurs because the Subreport control has an implicit KeepTogether property. By design, the KeepTogether property tries to keep content of a subreport on one page. Because of this behavior, the report engine creates blank space on the main report if the subreport does not fit on the same page as the main report. Then, the report engine creates the subreport on a new page.</p> </blockquote> <p>The work around that they list is essentially 'don't use subreports'</p>