A hydrological investigation was conducted in a small headwater peatland located in the Experimental Lakes Area, north-western Ontario, Canada, to determine the subsurface and surface flow paths within the peatland, and between the peatland and an adjacent forested upland during baseflow and storm flow conditions. Distinct zones of groundwater recharge and discharge were observed within the peatland. These zones are similar to those found in much larger flow systems even though the peatland was only influenced by local groundwater flow. Groundwater emerging in seeps and flowing beneath the peatland sustained the surface wetness of the peatland and maintained a constant baseflow. The response of the peatland stream to summer rain events was controlled by peatland water table position when the basin was dry and antecedent moisture storage on the uplands when the basin was wet. The magnitude and timing of peak runoff during wet conditions were controlled by the degree of hydrological connectivity between the surrounding upland terrain and the peatland. (C) 1998 John Wiley Sons, Ltd.