She was purchased at Dubuque, Iowa, 13 June 1863; fitted out at Cairo, Illinois, and commissioned 2 October 1863, Lt. Thomas E. Smith in command. Assigned to the Naval forces on the Tennessee River, Peosta departed Cairo 28 October and arrived at Paducah, Kentucky, 3 November.
The ship was purchased in Dubuque, Iowa, on June 13, 1863; outfitted at Cairo, Illinois, and commissioned on October 2, 1863, with Lt. Thomas E. Smith as the commanding officer. The vessel departed Cairo on October 28 and arrived at Paducah, Kentucky, on November 3.