Plant litter decomposition in intermittent dry and wet habitats share decomposition mechanisms of both dry land and submerged habitats. The aims of the present study were therefore to compare fungi communities on the decomposing plant material regarding the water regime of the location. Furthermore we wanted to evaluate the effects of the water regime on the decomposition in combination with fungal decomposers. Litter decomposition was followed on selected sites of Lake Cerknica with different hydrological regimes, using the litterbag method. The elemental composition of the decomposing plant tissues of Phragmites australis and fungal communities developing on the decomposing plant material were analysed. The hydrological regime has an important role in defining the fungal community of P. australis leaf litter. Water regime affected the fungal communities, which exhibited higher diversity under more stable dry or submerged conditions (in contrast to intermittent). Decomposition rates were more affected by the environment as by the fungal community diversity or composition. But, despite differences in the fungal communities the elemental composition showed similar patterns of enrichment due to decreases in the organic fraction of the plant tissue.