Intramolecular folding events, triggered by the presence of salt, induce the self-assembly of beta-hairpin peptides into hydrogel networks at physiological conditions. At pH 7.4 and low ionic strength solution conditions, dilute, homogeneous solutions of peptide (less than or equal to 2 wt %) exhibit the viscosity of pure water. Circular dichroism spectroscopy shows that, at pH 7.4 in the absence of salt, peptides are unfolded. By raising the ionic strength of the solution, electrostatic interactions between charged amino acids within the peptide are screened, and a beta-hairpin conformation is adopted. Folded beta-hairpin molecules supramolecularly assemble via hydrophobic collapse and hydrogen bonding into a three-dimensional hydrogel network. FTIR and X-ray scattering data demonstrate that these hydrogels are rich in beta-sheet. Dynamic oscillatory rheological measurements demonstrate that the resultant supramolecular structure forms an elastic material whose structure, and thus modulus, can be tuned by salt concentration and temperature. Storage moduli of hydrogels increase with increasing salt concentration. Robust hydrogelation is also observed in cell growth media at physiological conditions. Transmission electron microscopy reveals that the hydrogel elasticity arises from a network nanostructure consisting of semiflexible fibrillar assemblies.