We measured methane release into the atmosphere, concentrations and fluxes of dissolved methane, and rates of methane production by peats in two bcavcr impoundments in the Adirondack Park region of New York to determine whether such impoundments are a significant source of atmospheric methane. In 1990, methane release rates were similar between impoundments and averaged 705 and 600 pmol cm-2 min-l (i.e. 162 and 138 mg CH, m-2 d-I). Water-column concentrations of dissolved CH, were lower in one impoundment (33 PM) than in the other (158 PM). Rates of CH, production by underlying peats were similar bctwecn impoundments and averaged 34.7 and 25.1 pmol crnm3 min-'. In both impoundments, CH, oxidation in the water and at the sediment-water interface secmcd to be an important factor controlling its release. Mossdominated wetlands adjacent to the impoundments had at least tenfold lower release rates for CH, and fivefold lower concentrations of dissolved CH,. Beaver impoundments in woodland streams appear to be important local sources of atmospheric CH,. Enhanced CH, cycling in these systems compared to that in local wetlands could be due to altered hydrology, increased retention of sediment and organic matter caused by beaver activities, or both.