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Sedge dominated peatlands do not rehabilitate well after being drained for rangelands and specific approaches are required in order to restore these sites. Restoration by blocking drainage canals aims to recover peatland functions, principally by raising the water table. Field surveys in Ruoergai, China identified the status of peatland degradation and satellite image analysis concluded that most of Ruoergai's peatlands are degraded mainly due to drainage and overgrazing. The restoration approach used in Ruoergai resulted in increased water levels up to 26cm higher than previously recorded in canals. Levels in shallow water canals also increased up to 50cm, which led to an overflow of water and rewetting of the adjacent peatlands. This resulted in one peat-mining site being filled with water and aquatic vegetation. Pioneering vegetation including Heleocharis Horsetail (Equisetum heleocharis) and Halerpestes (Halerpestes tricuspis) colonized in the restored sites. It was concluded that blocking canals could be an effective method to restore hydrological function of drained peatlands and contribute to vegetation recovery.