Peterborough sits along the Contoocook and Nubanusit rivers in the Monadnock Region and has cultivated a reputation as one of New Hampshire's most active small-town arts communities. The town is home to the MacDowell artist residency, one of the oldest in the country, which has hosted generations of writers, composers, and visual artists.

Peterborough's walkable Main Street offers independent bookstores, a historic theater, breweries, and farm-to-table restaurants, supported by an active civic and cultural calendar. The town also serves as a gateway to Mount Monadnock and the Monadnock-Sunapee Greenway, drawing hikers throughout the year.

With a modest local job base, many residents commute to nearby Keene or the Nashua area, while others work in the arts, education, or small local businesses. Periodic flooding along the town's two rivers has shaped downtown development, and ongoing mitigation remains part of long-term planning.