In September of 1978, Rev. Randolph W. Barr was assigned the task of "Mission Developer" for the Maryland Synod. During late 1978 and early 1979, a small but faithful group began worship services on a parking lot in West Ocean City.

On March 24, 1979, a "kick-off" event was conducted in the 15th Street Fire Station to inform the local residents on the background and proposed ministry of the St. Peter's congregation. Following this introductory event, on April 8, 1979, Palm Sunday, the first formal worship service was conducted in a room at the Ocean City Convention Center with 143 people in attendance.

On November 4, 1979, a Groundbreaking Ceremony was held for a "St. Peter's Lutheran Church" and on May 18, 1980, the cornerstone was set. The official organization date for the congregation was February 3, 1980.

On June 1, 1980, Rev. Randolph W. Barr was installed as the first Pastor of St. Peter's. "Randy" as he was affectionately known attracted many worshippers and, in order to accommodate the ever growing congregation, the church building was expanded on April 12, 1981, to the south.

On May 27, 1984, ground was broken for a second expansion to provide space for a Social/Meeting Room. This westward expansion was dedicated on September 2, 1984. It was after the second expansion that the original pastor, Randy Barr, answered a call from a congregation in Camp Hill, Pennsylvania. A call committee was organized and on March 3, 1987, Ash Wednesday, the Rev. Dr. Harry Wolpert was called to be the Pastor at St. Peter's.

By the fall of 1999, the congregation realized there was a need for an additional Pastor, so a call committee was organized.  In January of 2002 a Call was issued to Rev. Dr. James Davis to become Associate Pastor for St. Peter's on April 21, 2002.