From its inception, the community's economy revolved around fishery. However, tourism began to overtake fishing in economic importance following the Second World War. Today, Peggy's Cove is a major tourist attraction, although its inhabitants still fish for lobster, and the community maintains a rustic undeveloped appearance. The regional municipality and the provincial government have strict land-use regulations in the vicinity of Peggy's Cove, with most property development being prohibited. Similarly there are restrictions on who can live in the community to prevent inflation of property values for year-round residents.