This fishing village in Nova Scotia was founded in 1811 by six families of German descent. As seen by the many boats in the painting, fishing has been a mainstay of this small community since its inception. Over the last few decades, the charm of this village has spread and tourism has gradually taken over as the leading economic industry. Located on the eastern shore of St. Margarets Bay, the area is known for its rugged and rocky terrain. In Eric's painting of Peggy's Cove, brightly painted wooden buildings dot the peninsula where villagers enjoy their spoils of fish and lobster.