Peaceful Valley is the oldest permanent settlement within the state of Rockford and had existed well before the official establishment of Peace Colony (present-day state of Rockford). It was founded in late April to early May in the year of 1999.

It has retained its small-town character and has featured many fine buildings dating back to early 1999. The Peaceful Valley was the first town to have its own police department, which is headquartered in a building built in 1999. It was also the first town to have its own suburb, called Aspen which generally comprises the southern district of the town.