Documentation and agile IT projects: never the twain shall meet?

What is the place of technical documentation in agile projects?

During one of the projects I was running, a colleague came up to me and said that we could not call what we were doing ‘agile’ bearing in mind the technical documentation that the client had requested of us as we were designing this computer application for them.

It must be said that compiling documentation is not usually the favourite task of developers, who may be tempted to try and find a way of dispensing with the task altogether.