Region 2 comprises arctic and subarctic North America and is underlain by continuous or discontinuous permafrost. Its freshwater systems are dominated by a low energy environment and cold region processes. Central northern areas are almost totally inยฏuenced by arctic air masses while Paciยฎc air becomes more prominent in the west, Atlantic air in the east and southern air masses at the lower latitudes. Air mass changes will play an important role in precipitation changes associated with climate warming. The snow season in the region is prolonged resulting in long-term storage of water so that the spring ยฏood is often the major hydrological event of the year, even though, annual rainfall usually exceeds annual snowfall. The unique character of ponds and lakes is a result of the long frozen period, which aects nutrient status and gas exchange during the cold season and during thaw. GCM models are in close agreement for this region and predict temperature increases as large as 48C in summer and 98C in winter for a 2 ร CO 2 scenario. Palaeoclimate indicators support the probability that substantial temperature increases have occurred previously during the Holocene. The historical record indicates a temperature increase of 418C in parts of the region during the last century. GCM predictions of precipitation change indicate an increase, but there is little agreement amongst the various models on regional disposition or magnitude. Precipitation change is as important as temperature change in determining the water balance. The water balance is critical to every aspect of hydrology and limnology in the far north. Permafrost close to the surface plays a major role in freshwater systems because it often maintains lakes and wetlands above an impermeable frost table, which limits the water storage capabilities of the subsurface. Thawing associated with climate change would, particularly in areas of massive ice, stimulate landscape changes, which can aect every aspect of the environment. The normal spring ยฏooding of ice-jammed north-ยฏowing rivers, such as the Mackenzie, is a major event, which renews the water supply of lakes in delta regions and which determines the availability of habitat for aquatic organisms. Climate warming or river damming and diversion would probably lead to the complete drying of many delta lakes. Climate warming would also change the characteristics of ponds that presently freeze to the bottom and result in fundamental changes in their limnological characteristics. At present, the food chain is rather simple usually culminating in lake trout or arctic char. A lengthening of the growing season and warmer water temperature would aect the chemical, mineral and nutrient status of lakes and most likely have deleterious eects on the food chain. Peatlands are extensive in region 2. They would move northwards at their southern boundaries, and, with sustained drying, many would change form or become inactive. Extensive wetlands and peatlands are an important component of the global carbon budget, and warmer and drier conditions would most likely change them from a sink to a source for atmospheric carbon. There is some evidence that this may be occurring already. Region 2 is very vulnerable to global warming. Its freshwater systems are probably the least studied and most poorly understood in North America. There are clear needs to improve our current knowledge of temperature and precipitation patterns; to model the thermal behaviour of wetlands, lakes and rivers; to understand better the interrelationships of cold region rivers with their basins; to begin studies on the very large lakes in the region; to obtain a ยฎrm grasp of the role of northern peatlands in the global carbon cycle; and to link