PEAT SOIL FORMED THROUGH ACCUMULATION AND DECOMPOSITION OF VEGETATION OR ORGANIC MATTER UNDER WATERLOGGED CONDITION. PEATLANDS DRAINAGE FOR AGRICULTURE IS ONE OF THE MAIN REASON OF PEATLANDS DEGRADATION. THIS STUDY AIMS TO DETERMINATE THE EFFECT OF COFFEE GROUNDS AND GROUND WATER LEVEL ON SOIL PH, ORGANIC CARBON AND DISSOLVED ORGANIC CARBON IN PEAT SOIL. THE STUDY USED A COMPLETELY RANDOMIZED DESIGN WITH TWO FACTORS. THE TREATMENT WAS INTERACTION BETWEEN COFFEE GROUNDS AND GROUND WATER LEVEL, SIX TREATMENT INTERACTION WERE OBTAINED. EACH TREATMENT WAS REPLICATED FOUR TIME, RESULTING IN 24 EXPERIMENTAL UNITS. INCUBATION WAS CONDUCTED FOR FOUR WEEKS. THE RESULT SHOWED THAT THE APPLICATION OF COFFEE GROUNDS AND GROUND WATER LEVEL HAD AN EFFECT ON SOIL pH, ORGANIC CARBON AND DISSOLVED ORGANIC CARBON.