Referred to as "little Norway in Alaska" by its residents, Petersburg is situated on the northwest point of Mitcofisland, midway between Juneau and Ketchikan. A No1wegian fishern1an named Peter Buschmann built a cannery on his homestead there in 1896 to take advantage of the abundant salmon runs in the area as well as its closeness to Frederick Sound, one of the best inside halibut fishing grounds in Alaska.

The snow-capped coastal n1ountains, forest, sky and water provided a beautiful setting. As the comn1unity grew, Buschmann encouraged pern1anent settlement by giving away land to people to build houses with lumber he sold from his sawmill