The case for founding Peterlee was put forward in Farewell Squalor by Easington Rural District Council Surveyor C. W. Clarke, who also proposed that the town be named after celebrated Durham miners' leader Peter Lee.

[2] It is one of the few places in the British Isles named after a recent individual, and unique among post-Second World War new towns in having its existence requested by local people through their MP.

George Grenfell Baines' plan was accepted, and construction quickly began, but it was of poor quality.

English Heritage described it as "an internationally important masterpiece"; however, some local residents and councillors considered it an eyesore and campaigned to have it demolished.

[11] However, in July 2009, a six-month revamp programme was completed at a cost of £400,000, which includes reinstating the original murals and stairs.

The A181 runs to the south-west of the town at the Castle Eden and Wingate junction on the A19 leading to Wheatley Hill, Thornley, and Durham.

Peterlee is served by Arriva North East and Go North East in the local area, to Dalton Park, and to the towns and cities of Newcastle, Gateshead, Sunderland, Houghton-le-Spring, Durham, Hartlepool, Sedgefield, Newton Aycliffe, Billingham, Stockton, Middlesbrough and Darlington.