Field studies were initiated in 1999 at Scotty Creek in the lower Liard River basin, NWT, Canada, to improve understanding of and ability to predict the major water fluxes and storage processes within a wetland-dominated zone of the discontinuous permafrost region. This paper synthesises a decade of published and unpublished research at Scotty Creek for the purpose of presenting the major factors that should be considered by water scientists and managers as a basis for modelling and management strategies. Five main topics are covered: (1) peatlands of lower Liard River valley; (2) hydrological characteristics of permafrost plateaus, flat bogs, and channel fens; (3) runoff generation on permafrost plateaus; (4) conceptual model of peatland hydrology; and (5) climate warming and implications for basin runoff. This synthesis offers a practical understanding of the hydrology of wetland-dominated basins with discontinuous permafrost. It also offers insight into how landscape changes resulting from climate or human disturbances may influence the basin hydrograph.