The community’s famous lighthouse marks the eastern entrance of St. Margarets Bay. Peggy is a nickname for Margaret, and the village may have taken its name from the bay upon which it is situated. Local folklore has several alternative origins for the name. Some people claim Peggy was an early settler, while others say she was a survivor from a shipwreck. Visitors may explore the granite outcrop on Peggy’s Point around the lighthouse. Despite numerous signs warning of unpredictable surf, there are several incautious visitors each year who are carried off the rocks by waves, sometimes drowning.