Peterson is a founding member of the Square Peg Alliance. He has toured with Caedmon's Call, Nichole Nordeman, Jill Phillips, Andrew Gullahorn, Ben Shive, Eric Peters, and other members of the Square Peg Alliance.
This led to Peterson signing in 1999 with Watershed/Essential Records. His first full-length album, Carried Along was released in 2000. The album was listed on CCM Magazine's list of the Top 10 albums of 2000. It featured the top ten radio single, “Nothing to Say.”
Peterson's second album, Clear to Venus released on September 11, 2001.
In 2003, Peterson released Love and Thunder. It featured Alison Krauss, Cliff Young and Randall Goodgame and was produced by Dove Award winning Christian music veteran, Steve Hindalong. Also in 2003, Peterson read narration for the audio version of Ray Blackston's novel Flabbergasted, and Caedmon's Call recorded "Mystery of Mercy", a song Peterson co-wrote with Randall Goodgame, for their album Back Home
In 2004, Peterson's song "Family Man", from the album Love and Thunder, was nominated in the category "Country Recorded Song of the Year" for the 35th Annual Dove Awards. Peterson also released a Christmas album, Behold the Lamb of God: The True Tall Tale of the Coming of Christ. Since the holiday season of 2004, Peterson and a wide variety of fellow Nashville area musicians have gone on tour playing the songs from the album. Musicians involved in the tour include: Ron Block, Garett Buell, Cason Cooley, Sara Groves, Andrew Gullahorn, Phil Keaggy, Sandra McCracken, Bebo Norman, Fernando Ortega, Andrew Osenga, Eric Peters, Pierce Pettis, Jill Phillips, Gabe Scott, Ben Shive, David Wilcox and Derek Webb. The tour culminates in an annual performance in Nashville's Ryman Auditorium.
In 2006, Peterson worked with his friend Randall Goodgame to release Slugs & Bugs & Lullabies, a children's album. The album produced two tracks which were featured on the newest video in the best-selling Veggie Tales series called The Wonderful Wizard of Ha's. Peterson sang the song "Arise, Arise" on Songs from the Voice, Vol. 2: Son of the Most High, a compilation album produced by Don Chaffer of Waterdeep. That same year, Michael Card recorded Peterson's song "The Silence of God" for his album The Hidden Face of God. Peterson has appeared on Card's radio show on numerous occasions.
In 2007, Peterson independently released Appendix M: Media / Music / Movies, an EP containing live versions, original demos, and rarities.
Peterson has recently completed recording Resurrection Letters, Volume Two, a collection of songs about what the resurrection of Jesus Christ means for people today, due to be released in Fall 2008.