Peace was initially offered as an mp3 download as part of NPG Music Club Edition # 1 (along with Mad, Funky Design, Splash, When Lay My Hands On U and NPG Ahdio Show #1), but a sample of the track had been available to stream on NPGOnlineLtd.com in March 2000. Three months after the mp3 download, Peace was available as a single, sold only at concerts on Prince's Hit N Run Tour, beginning with the 14 April 2001 show at the Atlanta Civic Center, Atlanta, GA, USA. In 2004, the track was included as the eighth track on the compilation album The Slaughterhouse (without a specific artist credit).
While specific recording dates are not known, basic tracking is believed to have taken place late 1999 to early 2000 at Paisley Park Studios in Chanhassen, Minnesota. The track was planned for inclusion on the New Power Generation album Peace announced in early 2000 (and mentioned on the packaging for the Peace single, which was printed in early 2000). This album remains unreleased, however. An edit of the track was also included as the second track on the Man'O'War (Remix) NPG Records Sampler unreleased cassette (intended for promotional use only).