Late-Holocene peat stratigraphy of a Canadian boreal peat bog was examined to evaluate the potential of Sphagnum ¹³C values as surface moisture proxy indicators. Isotopic measurements were compared to testate amoebae-inferred water-table depth reconstructions, plant macrofossil assemblages and past decomposition levels inferred by colorimetric humification. AMS radiocarbon dates were coupled with ²¹⁰Pb dates to establish peat chronology. Although the mechanisms underlying carbon fractionation processes in peatlands are not well understood, we demonstrate that Sphagnum ¹³C values have potential for palaeohydrological reconstructions, since variations presented by the isotopic values can generally be correlated with the other proxy records, especially during drier episodes.