Pedro Bay is a city located in Lake and Peninsula Borough, Alaska, United States. It is situated on the northeastern shore of Iliamna Lake, about 175 miles southwest of Anchorage. Pedro Bay is primarily inhabited by the Dena'ina Alaska Natives, who have lived in the region for thousands of years. The city is known for its beautiful natural scenery, including the surrounding mountains, forests, and the lake itself. The economy of Pedro Bay is centered around fishing, particularly salmon and halibut, and subsistence hunting and gathering. The city has a small population and is relatively isolated, with limited road access.