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Within a short drive from Colwell's By The Sea Oceanfront Cottages is the village of Peggy's Cove Known as the idyllic fishing village, Peggy's Cove is one of most popular stops in Atlantic Canada. Set on rocky shores, the lighthouse and village at Peggy's Cove are a photographer's paradise. Despite its popularity this tiny fishing village has been able keep the same relaxed atmosphere that has made it famous. Peggy's Cove is certainly one of Canada's gems.