Since it’s incorporation in 1760, Peterborough has been a busy commercial center with many industries as well as a cultural hub for artists and writers alike. Although not known for certain, this town was probably named from Charles Mordaunt, third Earl of Peterborough. Other possibilities include it having been named Peter's Borough for Peter Prescott, clerk of the Masonian Proprietors, or for St. Petersburg in Russia.

Peterborough was among the soldier's towns named during the term of Governor Jonathan Belcher when New Hampshire was still a province of Massachusetts. Peterborough is also home to the Peterborough Basket Company, which opened in 1854 and is one of the oldest basket manufacturers in the country.

Peterborough is home to the MacDowell Colony, a retreat for writers, artists, and composers. Guests have included Edward Arlington Robinson, Leonard Bernstein, and Thornton Wilder, whose play "Our Town" was inspired by Peterborough and it has since been associated with that idealistic community. Peterborough remains the busy commercial center it has always been and it continues to serve surrounding communities for shopping, recreation and activities.

In recent years, Peterborough has seen a rise in new construction throughout the town, however it maintains its unique charm throughout downtown and surrounding areas. Many styles of architecture can be found in Peterborough, from typical “New Englander” and 1800s and early 1900s Victorians to elegant brick colonials and stunning Victorian estates.