Pedro Bay is located at the head of Pedro Bay in Lake Iliamna, 30 miles northeast of Iliamna and 180 miles southwest of Anchorage. Located in a heavily wooded area, with birch, cottonwood, alders, willow and white spruce trees, Pedro Bay has one of the most attractive settings in southwest Alaska. Pedro Bay is accessible by air and water. There is a State-owned 3,000' long by 60' wide gravel airstrip. Scheduled and charter air services are available from Iliamna and Anchorage. Barge service is available from Naknek via the Kvichak River. Goods are also sent by barge from Homer to Iliamna Bay on the Cook Inlet side and portaged over a 14-mile road to Pile Bay, 10 miles to the east.
The Dena'ina Athabascan people occupied the area around Pedro Bay historically. They warred with Russian fur traders over trade practices in the early 1800s.
The town Pedro Bay was named for a man known as "Old Pedro," who lived in this area in the early 1900s.
Today, most residents obtain summer employment in the Bristol Bay fishery or in Iliamna Lake tourism services. Most families depend heavily on subsistence activities, utilizing salmon, trout, moose, bear, rabbit and seal. Several wilderness lodges operate in Pedro Bay.
