The Town of Peace River is bounded by the M.D. of Peace No. 135 to the west and southwest, Northern Sunrise County to the east, the County of Northern Lights to the north and Birch Hills County further south at the confluence of the Peace and Smoky Rivers. In recognizing the need to plan for the growth of the Town of Peace River, the M.D. of Peace No. 135, Northern Sunrise County and the County of Northern Lights participated in the Peace River Inter-Municipal Development Plan (IDP) in July 1999. Through the adoption of the Peace River IDP, the four municipalities confirmed their commitment to cooperate and work together for the purpose of realizing the opportunities associated with the future growth of the Peace River area. The IDP addresses the future land use planning of the Peace River area, as well as other matters related to the physical, social and economic development of the region. The four municipalities are in the process of updating the IDP. In preparation for this, the municipalities also reviewed and updated their respective municipal development plans. While Northern Sunrise County established a serviced industrial area, the Sunrise Gateway Business Park on its own on the eastern boundary of the town, the M.D of Peace and County of Northern Lights included in their municipal development plans areas of joint development planning with the Town of Peace River on lands abutting the town to the north and to the west. The joint development planning was a partnership agreement to share the costs of servicing the lands and then jointly collecting taxes instead of the town annexing these lands. This was in response to the town's growing need for commercial and industrial land, and also part of its long term plan to have industrial establishments on the scenic banks of the Peace River cede the riverfront to future residential development while gradually relocating to industrial parks now to be located away from the river bank.