The prevailing theory as to the origin of the name Pegswood is that it means Pecg's Enclosure, Pecg being a personal name. Another theory is that the element Peg- derives from the Anglo-Saxon word pecg meaning pig. Pegswood started as a small farming settlement, yet with the discovery of coal and the opening of Pegswood colliery, the village expanded to accommodate miners in 1872. The colliery shut in 1969, however the village is still classed as a pit village. All that is left today are the Pit Heap, now a park, and the entrance to the mine shaft, now in the Bothal Court estate. Coinciding with the coal industry, there was also a brickworks in Pegswood, which has since closed down.