Since September 2012, Peterson has been an assistant professor of history at the University of California at Santa Cruz, where she teaches courses on Russian and European history, environmental history, and the history of the Silk Roads. Peterson's work stands at the intersection of environmental history and imperial history. She contributes to ongoing debates about what empires are and what they do by bringing empire and environment together and exploring how a focus on the physical environment might open up new avenues for thinking about modernity and colonial relationships.

At the Rachel Carson Center she worked on "Technologies of Rule: Empire, Water, and Modernization of Central Asia, 1867–1941".

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