Peterson was born in Winnipeg, Manitoba, Canada and began drumming at the age of three. He was a founding member of the Canadian rock band, The Guess Who, in the mid-1960s. He played with the group through to its breakup in 1975. He has participated in reunions involving principal band members Randy Bachman, Jim Kale and Burton Cummings, and continues to perform with the band along with fellow-original member, bassist Jim Kale. He has played with the band longer than any other member and currently resides in Greensboro, North Carolina.