Bay is located at the northeast end of Iliamna Lake, at the head of
Pedro Bay, 176 air miles southwest of Anchorage on the Alaska Peninsula.
It lies at approximately 59░ 47' N Latitude, 154░ 06' W Longitude (Sec.
33, T004S, R028W, Seward Meridian). The community is located in the
Iliamna Recording District. The area encompasses 18 sq. miles of land
and 9 sq. miles of water.
The Dena'ina Indians have occupied this
area historically. The Dena'ina warred with Russian fur traders over
trade practices in the early 1800s. The community was named for a man
known as "Old Pedro," who lived in this area in the early 1900s. A post
office was established in the village in 1936.