Acetylene reduction by the peat microflora was unaffected by light, but was sensitive to temperature, with an optimum of about 30 °C. The nitrogenase was inactivated by exposure to temperatures above about 35 °C. Activity occurred in completely anaerobic conditions; the rate of ethylene production was of the order of 0.5 nmol C2H4 ml−1h−1. Experiments with time courses indicated that exposure to oxygen caused an initial inhibition of activity followed by a period in which ethylene production was stimulated to rates much higher than in the anaerobic tests; both the inhibition and stimulation appeared to be related to the level of oxygenation. It is suggested that these results could be explained by the existence of nitrogen-fixing associations of aerobic and anaerobic bacteria in the peat. The stimulation of activity caused by exposure to air indicates that care must be taken when interpreting results of the assay obtained from waterlogged organic soils.