One story suggests the village may have been named after the wife of an early settler. The popular legend claims that the name came from the sole survivor of a shipwreck at Halibut Rock near the cove. Artist and resident William deGarthe said she was a young woman while others claim she was a little girl too young to remember her name and the family who adopted her called her Peggy. The young shipwreck survivor married a resident of the cove in 1800 and became known as "Peggy of the Cove", attracting visitors from around the bay who eventually named the village Peggy's Cove, after her nickname.