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Arthur Peters was born on 19 August 1855 in Charlottetown, Prince Edward Island. His parents were James Horsefield Peters, Justice of the Supreme Court of P.E.I. and Master of the Rolls, and Mary Cunard, daughter of Sir Samuel Cunard who had major land holdings on P.E.I. and later founded the world famous Cunard Steamship Line. Arthur was educated at Prince of Wales College, Charlottetown and Kings College, in Halifax, Nova Scotia. Following his studies he worked in a Charlottetown law office. He pursued further studies in England and upon his return in 1878 was admitted to the Bar of PEI. He was appointed a Queen

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