Nitrous oxide (N2O) is a potent greenhouse gas, and soil is one of its most substantial sources. Emissions are influenced by both biotic and abiotic processes, as well as the physiochemical properties of the medium. Organic soils fully drained in boreal climates are a potentially significant source of nitrous oxide. Lower, drainage levels and nutrient availability have been shown to reduce N2O emissions. Predicting N2O emissions from agriculturally managed peatlands is challenging. In situ measurements are crucial for addressing these difficulties. This study presents three years of in situ field measurements of nitrous oxide fluxes and soil hydrological status in peatland soils under different agricultural management regimes: cultivated drained (CD), uncultivated drained (UCD), and wet (W) in Western Iceland. Fluxes were quantified by analysing a time-concentration series obtained from permanent chambers and subsequently evaluated using gas chromatography in the laboratory. The minimum potential N2O consumption rate (mean ± 95 % Cl) was estimated as 0.76 ± 0.38, 0.56 ± 0.18 and 0.56 ± 0.14 mg N2O-N m⁻² day⁻¹ for CD, UCD, and W sites, respectively. Yearly accumulated emissions were estimated as 2.24 ± 1.47, 1.26 ± 0.64 and 0.26 ± 0.44 kg N2O-N ha−1 yr−1 for CD, UCD, and W sites, respectively. The relatively low emission rates observed at drained sites can be explained by the stable water content, and by limited availability of soil phosphorus, which hampers N2O production and potentially leads to more active N2O consumption. Both the stable water content and low phosphorus availability is explained by mineral inputs to the peatlands, acting through decreased soil unsaturated hydraulic conductivity and increased phosphorus retention. The effects of mineral content offer potential mitigation option to decrease N2O emissions. This study highlights the complexity of N2O emissions from peatland soils and emphasizes the significance of site-specific factors in managing greenhouse gas emissions. Further studies investigating the underlying processes behind N2O fluxes in the peatland and andic soils are recommended.