Around the world many peatlands are managed unsustainably. Drainage of the peat causes soil subsidence and a range of negative societal impacts. Integrated strategies are required to ensure more sustainable long-term settings, based on impact assessment models that simulate the interrelated dynamics of water management and soil subsidence, and determine the spatial and temporal range of societal impacts. This paper presents an integrated modelling framework that meets these requirements. We used the framework to assess the impacts of a range of water management strategies in Dutch peatlands. Average soil subsidence rates were shown to range from 0.6 to 4.5 mm·y− 1, resulting in marked differences in societal impacts that affect stakeholders unequally. Moreover, the impacts on real estate damage and water system maintenance revealed inverse trends that result in increasingly unbalanced cost-benefit ratios. The generated insights led the regional water authority to change their current water management strategy, preventing unsustainable future developments. We find the results relevant for improving stakeholders' awareness of long-term impacts of management strategies, and making negotiation processes on goals, means, and possible future pathways more transparent.