Located south and east of the Rainbow Flowage, an impounded stretch of the Wisconsin River, Rainbow Wetlands features a large peatland of sedge meadow, shrub swamp, open bog, and muskeg. The northern and eastern portions of the peatland support an extensive open bog of sphagnum, sedges, and ericaceous shrubs. Dominant species include few-seeded sedge, bog goldenrod, bog aster, steeple-bush, and Labrador-tea. Toward the interior are leather-leaf, small cranberry, and few-seeded sedge on a dense sphagnum mat. Low sandy islands support stands of jack pine dominated forest. As one moves south and west, the nutrient gradient changes, bog ericads are much less dominant, and the site grades to open meadow with scattered tall shrubs. The sedge meadow is dominated by sedges including American woolly-fruit, beaked, star, and few-seeded sedge, blue-joint grass, and willows including bog, meadow, and balsam willow. Sphagnum mosses are present but are not associated with the usual bog ericads and insectivores. Representative herbs are swamp loosestrife, bog goldenrod, and northern blue-flag iris. The open meadow is interspersed with shrub-carr, marsh, and small islands of tamarack, white pine, paper birch, red maple, and aspen. Birds include sedge wren, swamp sparrow, song sparrow, common yellowthroat, and Nashville warbler. Rainbow Wetlands is owned by the DNR and was designated a State Natural Area in 2007.