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                                                                      Exhibit 23


                         CONSENT OF INDEPENDENT AUDITORS



We consent to the incorporation by reference in the Registration Statement (Form
S-8, No. 33-58799) pertaining to the PENWEST, LTD. 1994 Stock Option Plan and to
the incorporation by reference in the Registration Statement (Form S-8, No.
33-88946) pertaining to the PENWEST, LTD. Savings and Stock Ownership Plan of
our report dated October 11, 1996, with respect to the consolidated financial
statements of PENWEST, LTD. included in the Annual Report (Form 10-K) for the
year ended August 31, 1996.





Seattle, Washington
November 25, 1996                                             ERNST & YOUNG, LLP


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