Climate is a major factor affecting the development and form of peatlands, as well as the distribution of individual bryophyte species. This paper examines the climatic and ecological gradients affecting the distribution of peatland types along a north-south gradient in the Mackenzie River Basin. Based on a TWINSPAN analysis of bryophyte abundance from 82 peatlands in the Mackenzie River Basin, seven peatland types, two with southerly geographical distributions are recognized. In the Mackenzie River Basin, such local factors as surface water chemistry, pH, and solute concentration as well as height above the water table play a significant role in determining bryophyte species distributions. Climate is secondary. Amongst the climatic variables, precipitation, length of the growing season, and annual temperature are the most significant. The seven peatland groups are: widespread poor fens; peat plateaus with thermokarst pools, low-Boreal bogs; bogs and peat plateaus without thermokarst pools; low-Boreal dry poor fens; wet moderate-rich fens; and wet extreme-rich fens.