Named for the nearby Pegasus Bay, it is adjacent to the town of Woodend and is 25 km north of Christchurch.

Retail and office space is located in the centre of the town adjacent to Lake Pegasus.

The project was first proposed in 1997 by Southern Capital and was initially developed by Infinity Investment Group of Wānaka.

Todd Property bought it for an undisclosed sum in December 2012 and undertook infrastructure development to complete the project,[3] selling to the Templeton Group in 2019.

[4] This was a first for New Zealand, and the initial marketing involved a gala auction event around a scale model of the project.

[7] Pegasus is described by Statistics New Zealand as a small urban area and covers 6.34 km2 (2.45 sq mi).