Peggys Cove is 43 kilometres southwest of downtown Halifax and comprises one of the numerous small fishing communities located around the perimeter of the Chebucto Peninsula.
The community is named after the cove of the same name. Peggy is a nickname for Margaret, and the village may have taken its name from St. Margarets Bay upon which it is situated. Local folklore has several alternative origins for the name. Some people claim Peggy was an early settler. Others say she was a young survivor from a shipwreck who remembered nothing of her life before her rescue; not even her name but was given the name Peggy by the family who adopted her.