The surrounding country supports grazing on the higher peaks and dry grain farming on the slopes and plains.

It may have been named after William Peter, a Scottish grazier who in 1841 pioneered European settlement in this district.

His sheep runs extended all round this hill, one of his head stations being nearby.

[2][circular reference] "Peter's Hill" is shown on the western ridge of an 1842 plan of the Light River valley.

"Mr Peter's Head Station" is shown on the eastern slopes of the valley.