Water management is the most important component in developing peatlands for agriculture. Utilization of peatlands for food crops and research on its physical, chemical and biological characteristics have been carried out previously since a long time. However, the implementation of peatland management technology is not much well known. Peatland agricultural commodities are developing. In 1970-1990, mostly for food crops and horticulture. Since 2000 plantation crops had been developed rapidly. About 0.5-0.8 million ha of peatlands are planted by food crops, including horticulture and 2.5-3.0 million ha for oil palm. The use of peatlands is still being debated along with threats to the environment, especially greenhouse gas (CO2) emissions. The use of peatlands for agriculture by local communities aimed at sustaining life and has an interesting long history. Farmers who live in peatlands have special abilities and expertise in peatland management. Based on this experience and local wisdom, the government then planned to open peatlands, especially in supporting transmigration programs from Java, Nusa Tenggara, and Bali. However, the use of peatlands for agriculture has changed the fertility of peatlands and reported to be a trigger for land degradation so that improvement efforts are needed. The government has also issued several policies in improving the management and conservation of peatlands. This paper is a review of the results of research and experience on water management on peatlands for food crop and horticulture production.