According to legend, Peggy’s Cove was named after the only survivor of a schooner that ran aground and sank in 1800… a woman named Margaret. Local folk called her “Peggy” and her home came to be known as Peggy’s Cove. The original lighthouse was built in 1868. Exactly 100 years later, in 1968 the Campbell family opened the Sou’Wester Restaurant.