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Peel Godred is a walled town and the terminus for the Peel Godred branch. It is also the main depot for the "Sodor Regiment".

Two kilometres north is the Sodor Aluminium Company, where Stuart and Falcon worked for several years after the Mid Sodor Railway closed in 1947. Alumna is brought there from Tidmouth, and the finished ingots of aluminium are taken to the mainland. The company brings valuable employment and income for the area.

Next to the Sodor Aluminium Company is a hydro-electric dam.

In the late 1800s, the Sodor and Mainland Railway promised to build an extension to the town, but as the railway steadily became bankrupt the eventuality of a branch shrank, and some a group from the town entered an agreement with some mine owners at Cas-ny-Hawin to create a line to Peel Godred. The group ran out of funding before the line could reach the town. After the North Western Railway created a branchline to Peel Godred in the 1930s, the line, which was named the Mid Sodor Railway, declined and finally closed in 1947.